Why monitoring your credit report is as important as tracking your health

How many of us regularly check the health app on our phones, use a smart ring, or wear a multi-utility wristwatch that keeps us updated on our health parameters? I guess most of us do – from Gen Z to older generations.

Now think: how many of us closely monitor the stock market, whether it’s the Nifty, Sensex, or even the Dow Jones? But here’s the real question: how many of us monitor our credit report, of course not daily, but at least periodically, once a quarter, or a few times a year?

It’s surprising to see that while so many financially active and eligible people have taken some form of credit, say a credit card, a home loan, or a car loan, many of them have never even looked at their credit report.

Data indicated that approximately 59 crore Indians have taken a consumer loan at some point in time—this includes all historical borrowers, not just the currently active or living population. Yet, only a small fraction of them have ever checked their credit report, highlighting a significant gap in credit awareness.

And the issue isn’t about access anymore. Thanks to digitalisation and the customer-centric journeys offered by banks and financial apps, it’s easier than ever to check your credit report. You can access it via bank apps, digital payment apps, or websites, and directly from the websites of India’s four major credit bureaus.

So why don’t we check?

Most of us don’t feel the need to check until something goes wrong, e.g., a loan rejection or being offered poor terms due to a low credit score. But if you’re financially active and responsible for your own money, you owe it to yourself to be aware of every factor that impacts your financial stability, and your credit report is one of the most critical.

Your credit report isn’t just a tool for lenders. Increasingly, it’s being used in job recruitments, background verification checks, and even, believe it or not, on matrimony and dating platforms to assess financial credibility. It has become as vital to your financial health as tracking your steps or heart rate is to your physical health.

So, how do you check your credit report?

1. Via credit bureaus: Log in to the customer section of any credit bureau in India. You can generate a report using your identity details. Regulations mandate that each bureau must provide one free report per year.
2. Through your bank app: Many banks offer credit report access right within their net banking and mobile banking apps.
3. On payment and other financial platforms.

A credit report offers a multi-dimensional view of your credit journey, including loans availed, repayment history, and your credit behaviour. It also includes your credit score, a 3-digit number ranging from 300 to 900 (the higher the score lower the risk) that reflects your overall credit health.

A credit report shows demographic details like name, contact details, and address, and can alert you to red flags, such as incorrect loan entries or wrongly reported defaults. Monitoring your credit report regularly can help you catch errors early and enable you to maintain a healthy credit profile, which will ensure easy access to future credit at favorable terms.

Just like you visit the dentist for healthy teeth or go to the gym for a healthy body, reviewing your credit report should be a routine part of your financial self-care. Let’s make it a habit to check your credit report, monitor your credit score, and maintain a strong financial foundation. Because in today’s world, financial health is just as important as physical health.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, legal, or professional advice. While every effort has been made to ensure accuracy, readers should verify details independently and consult relevant professionals before making financial decisions. The views expressed are based on current industry trends and regulatory frameworks, which may change over time. Neither the author nor the publisher is responsible for any decisions based on this content.

Sachin Seth, Chairman CRIF High Mark and Regional MD CRIF India & South Asia