When to Review Credit Card Statements to Prevent Unauthorized Charges Impacting Your CIBIL Score
Having a good credit score is essential for financial well-being. Your credit score, particularly in India, is represented by the Credit Information Bureau (India) Limited (CIBIL) score. This score is an indicator of your creditworthiness and is widely used by lenders to assess your credit risk when you apply for loans or credit cards.
One of the factors that can impact your CIBIL score is unauthorized charges on your credit card. These can occur if your credit card details are compromised or if you overlook certain charges on your statement. To prevent unauthorized charges from impacting your CIBIL score, it is crucial to review your credit card statements regularly.
When is the best time to review your credit card statements? Ideally, you should make it a habit to review your statements as soon as they are available. This could be on a monthly basis when your statement is generated at the end of each billing cycle. By reviewing your statements promptly, you can identify any unauthorized charges and take action before they have a negative impact on your CIBIL score.
The benefits of reviewing your credit card statements regularly go beyond just protecting your credit score. It also helps you track your spending, identify any errors or discrepancies, and detect any fraudulent activity early on. By catching unauthorized charges promptly, you can dispute them with your credit card issuer and prevent any further damage to your credit score.
Why is it important to prevent unauthorized charges from impacting your CIBIL score? Your CIBIL score is a crucial factor that determines your creditworthiness. A high credit score can make it easier for you to access credit at favorable terms, while a low score can make it challenging to qualify for loans or credit cards. Unauthorized charges on your credit card can lead to missed payments or defaults, which can lower your score and make it harder for you to borrow in the future.
Frequently Asked Questions:
Q: What should I do if I notice an unauthorized charge on my credit card statement?
A: If you spot an unauthorized charge, contact your credit card issuer immediately to report the issue and dispute the charge. They will guide you through the process of resolving the unauthorized transaction.
Q: How can I protect my credit card details from being compromised?
A: To protect your credit card details, avoid sharing your card information with others, be cautious when making online transactions, and regularly monitor your statements for any suspicious activity.
Q: How often should I check my credit card statements?
A: It is recommended to check your credit card statements at least once a month when your statement is generated. Additionally, you can monitor your transactions online more frequently for added security.
Q: Can unauthorized charges on my credit card impact my credit score?
A: Yes, unauthorized charges can lead to missed payments or defaults, which can negatively impact your credit score. By reviewing your statements regularly, you can prevent unauthorized charges from affecting your CIBIL score.
In conclusion, reviewing your credit card statements regularly is vital for maintaining a good credit score and protecting yourself from unauthorized charges. By staying vigilant and promptly addressing any discrepancies, you can safeguard your creditworthiness and financial health in the long run.
