{"id":36,"date":"2019-01-04T08:33:23","date_gmt":"2019-01-04T08:33:23","guid":{"rendered":"https:\/\/blog3.indifi.com\/?p=36"},"modified":"2021-03-24T11:34:27","modified_gmt":"2021-03-24T11:34:27","slug":"increased-significance-decoding-credit-score","status":"publish","type":"post","link":"https:\/\/www.indifi.com\/blog\/increased-significance-decoding-credit-score\/","title":{"rendered":"The Increasing Significance Of Decoding Credit Scores\u200a\u2014\u200aWhy Pay Attention To Those Numbers?"},"content":{"rendered":"\n<figure class=\"wp-block-gallery alignleft columns-1 is-cropped wp-block-gallery-1 is-layout-flex\"><ul class=\"blocks-gallery-grid\"><li class=\"blocks-gallery-item\"><figure><img decoding=\"async\" loading=\"lazy\" width=\"500\" height=\"236\" src=\"https:\/\/blog.indifi.com\/wp-content\/uploads\/2019\/07\/credit-score1-500x236.jpg\" alt=\"The Increasing Significance Of Decoding Credit Scores\" data-id=\"1324\" data-link=\"https:\/\/blog.indifi.com\/increased-significance-decoding-credit-score\/credit-score1\/\" class=\"wp-image-1324\" srcset=\"https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2019\/07\/credit-score1-500x236.jpg 500w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2019\/07\/credit-score1-768x363.jpg 768w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2019\/07\/credit-score1-870x411.jpg 870w, https:\/\/www.indifi.com\/blog\/wp-content\/uploads\/2019\/07\/credit-score1.jpg 1990w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><figcaption class=\"blocks-gallery-item__caption\"><em>The Increasing Significance Of Decoding Credit Scores<\/em><\/figcaption><\/figure><\/li><\/ul><\/figure>\n\n\n\n<p>You would have come across emails in your inbox, with the subject \u201cfind your credit score for free\u201d and so on. If you\u2019re like most people, then you would have probably tossed that email into the trash, without giving it a second thought.<\/p>\n\n\n\n<p>In fact, a majority of people don\u2019t bother checking their credit score, unless they are applying for a bank loan or a credit card. What \u2019s shocking is\u2013many people, don\u2019t bother checking their credit ratings even while applying for a financial product like a loan.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background has-vivid-green-cyan-background-color\" href=\"https:\/\/www.indifi.com\">Get Instant Business Finance<\/a><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.indifi.com\/blog\/increased-significance-decoding-credit-score\/#Why_Do_People_Ignore_Their_Credit_Scores\" title=\"Why Do People Ignore Their Credit Scores?\">Why Do People Ignore Their Credit Scores?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.indifi.com\/blog\/increased-significance-decoding-credit-score\/#Why_Decoding_Your_Credit_Score_Is_Becoming_More_And_More_Important\" title=\"Why Decoding Your Credit Score Is Becoming More And More Important?\">Why Decoding Your Credit Score Is Becoming More And More Important?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.indifi.com\/blog\/increased-significance-decoding-credit-score\/#1_It_helps_You_Know_Where_You_Stand\" title=\"1. It helps You Know Where You Stand\">1. It helps You Know Where You Stand<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.indifi.com\/blog\/increased-significance-decoding-credit-score\/#2_It_Helps_You_Boost_And_Maintain_Your_Score_Over_Time\" title=\"2. It Helps You Boost And Maintain Your Score Over Time\">2. It Helps You Boost And Maintain Your Score Over Time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.indifi.com\/blog\/increased-significance-decoding-credit-score\/#3_Helps_You_Rectify_Errors\" title=\"3. Helps You Rectify Errors\">3. Helps You Rectify Errors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.indifi.com\/blog\/increased-significance-decoding-credit-score\/#4_Helps_You_Land_Better_Deals\" title=\"4. Helps You Land Better Deals\">4. Helps You Land Better Deals<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.indifi.com\/blog\/increased-significance-decoding-credit-score\/#Where_To_Check_Your_Credit_Score\" title=\"Where To Check Your Credit Score?\">Where To Check Your Credit Score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.indifi.com\/blog\/increased-significance-decoding-credit-score\/#Keep_An_Eye_On_Your_Credit_Score_Be_In_Control\" title=\"Keep An Eye On Your Credit Score &amp; Be In Control\">Keep An Eye On Your Credit Score &amp; Be In Control<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Do_People_Ignore_Their_Credit_Scores\"><\/span>Why Do People Ignore Their Credit Scores?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>One, it isn\u2019t a number that impacts your daily routines\u200a\u2014\u200alike your bank account balance or your weight. So, it becomes easy to neglect.<\/p>\n\n\n\n<p>Two, there are plenty of myths about credit scores. Some people falsely believe that by checking their credit scores, they run the risk of lowering it. This is a complete myth and needs to be put down. When you check your credit score, you\u2019re making a soft inquiry, which in no way, impacts your credit ratings and the score.<\/p>\n\n\n\n<p>Now, that we\u2019ve cleared the air, let\u2019s take a look at the reasons,<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Decoding_Your_Credit_Score_Is_Becoming_More_And_More_Important\"><\/span>Why Decoding Your Credit Score Is Becoming More And More Important?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_It_helps_You_Know_Where_You_Stand\"><\/span>1. It helps You Know Where You Stand<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Your credit score is an indicator of your overall financial health. Just like you keep a tab on your weight, blood sugar levels, BP to monitor your physical health, you need to check your credit score to keep your financial health in control.<\/p>\n\n\n\n<p>Irrespective of whether the number is poor or good, you need to know it. The good news is that\u200a\u2014\u200aonce you know where you stand, you can take the right steps to improve it.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_It_Helps_You_Boost_And_Maintain_Your_Score_Over_Time\"><\/span>2. It Helps You Boost And Maintain Your Score Over Time<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Remember, in school and colleges; you would study the entire syllabus on the eve of the exam and ace it? Well, credit scores don\u2019t work that way.<\/p>\n\n\n\n<p>You cannot boost your credit numbers overnight. It takes months and even years to build the numbers. By decoding your credit score, you can take the right steps to boost it gradually.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color\">Also Read: <a href=\"https:\/\/blog.indifi.com\/business-loans-credit-scores-dont-matter\/\">Business Loans: When Credit Scores Don\u2019t Matter <\/a><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Helps_You_Rectify_Errors\"><\/span>3. Helps You Rectify Errors<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>By decoding your credit score, you can find out whether your credit reports are accurate. For instance, you may have paid off a loan, but if your credit report doesn\u2019t reflect it, it may be the reason for your poor credit numbers.<\/p>\n\n\n\n<p>By tracking and monitoring your credit score, you keep your credit reports accurate and up to date.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Helps_You_Land_Better_Deals\"><\/span>4. Helps You Land Better Deals<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This is one of the biggest reasons to monitor and track your credit score. When you know your credit score, it gives you the upper hand in your negotiations with lenders. Lenders often offer lowered interest rates to people with higher credit scores.<\/p>\n\n\n\n<p>By knowing your credit scores, you can use it as the trump card in your negotiations while applying for a loan or credit card. Even 1% reduction in the interest rate, could reduce your loan burden significantly.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color\">Also Read: <a href=\"https:\/\/blog.indifi.com\/fixing-poor-cibil\/\">5 Pro Recommendations To Fix A Poor CIBIL Score<\/a> <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Where_To_Check_Your_Credit_Score\"><\/span>Where To Check Your Credit Score?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Earlier you had to pay to get your credit report and score. But, post-2017, the RBI has made it easy for people to check their credit scores. Today, you can apply for your credit report at a credit bureau for free. Alternatively, several online Fintech firms also provide your credit report for free.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Keep_An_Eye_On_Your_Credit_Score_Be_In_Control\"><\/span>Keep An Eye On Your Credit Score &amp; Be In Control<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Given the increasing importance of the credit score, make sure to monitor it regularly. And, if the numbers are low, work on improving them. And, for those with high ratings, make sure you maintain it. Even if your credit score is not high, don\u2019t fret. You can always explore loans from digital lenders like <a href=\"https:\/\/www.indifi.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Indifi<\/a> and give wings to your personal and well as business goals.<\/p>\n\n\n\n<p class=\"has-text-color has-vivid-green-cyan-color\"><a href=\"https:\/\/www.indifi.com\/business-loan\" target=\"_blank\" rel=\"noreferrer noopener\">Apply For Finance For Business In India<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You would have come across emails in your inbox, with the subject \u201cfind your credit score for free\u201d and so on. If you\u2019re like most people, then you would have probably tossed that email into the trash, without giving it a second thought. In fact, a majority of people don\u2019t bother checking their credit score, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1324,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[141],"tags":[12,55,114,26],"_links":{"self":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/36"}],"collection":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/comments?post=36"}],"version-history":[{"count":11,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/36\/revisions"}],"predecessor-version":[{"id":4109,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/posts\/36\/revisions\/4109"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media\/1324"}],"wp:attachment":[{"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/media?parent=36"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/categories?post=36"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.indifi.com\/blog\/wp-json\/wp\/v2\/tags?post=36"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}