Credit Monitoring is a method for tracking your credit history for any suspicious activities or changes in your report that must not have been there. This service shows new inquiries or accounts added to credit report. You then check the information to judge their genuineness. Credit monitoring is also done to keep a look out for changes in credit score either as soft enquiry or to record the score before applying for loans.
The system also helps protect your credit identity. The procedure for monitoring ensures credit policies and parameters are followed appropriately, and there is no delinquency in the practise. Also, credit management aids in paying for loans in time.
The CIBIL gets all necessary financial information about person's credit behaviour from relevant banks and institutions. It then prepares a report and assigns a credit score based on the details it has. CIBIL keeps the record in the report as reflected as the person's payment history, loan enquiries, outstanding amounts, paid back amounts and more.
Whenever a person applies for a credit card or loan their credit report is formed and assessed. Based on credit score given the finance product will be either approved or rejected. One can access the report from CIBIL by making a soft inquiry. It is advisable to check credit report at least once in a year.