Why Checking Your Credit Report Regularly is Crucial

For many, the credit report is something that is taken for granted. It is often viewed merely as a piece of information that doesn’t make a difference and therefore doesn’t need to be checked on a regular basis. However, nothing could be further from the truth. Your credit report not only plays a crucial role in your life, but actually dictates in many ways what type of future you will be granted.

If you’re not yet in the habit of checking your credit report because you don’t think it’s important or you’re turned off by its price tag, it’s time to take a look at reasons that checking your credit report regularly is not only a good idea, it’s crucial.

Financial Institutions Use Your Report to Determine Your Future

One of the most important reasons to check your credit report regularly is because financial institutions will be checking it to determine whether you are credit worthy before extending you money. In other words, to get a fair shake, you’ll need to see what they see.

Whether you’re applying for an auto, mortgage or personal loan, looking to get a credit card or even hoping to acquire auto insurance, the institution you’re working with will most likely look at your credit report to see your history with previous institutions. If you have a high rate of default or make late payments regularly, your chances of getting serviced may be jeopardized.

By checking your report, you could find out what’s on there and possibly pay some debts before applying for a loan or credit card to increase your chances of being approved.

There Are Three Reports and They Are Often Inconsistent

Another reason that it’s crucial to check your credit report regularly is that you don’t have just one. There are three credit bureaus (Equifax, Experian and Transunion) and they all create their own version of your report. Even more, different financial institutions may report to different bureaus, meaning it’s important to check all three reports.

You may feel that it’s a lot of work to keep track of them all, but if you don’t you could find that one or more contains information that is inconsistent with the others or flat out incorrect. The last thing you want is to have information counted against you that is being falsely reported.

Your Report Determines Your Credit Score

If you’re not familiar with your credit score, most widely accepted as Fair Isaac’s FICO Score, now is the time to get acquainted. Your credit score is considered a numeric equivalent of the information that has been listed on your credit report. It is calculated by a combination of factors, including your payment history, types of credit used, length of credit history, new credit and amounts owed.

Each credit bureau offers its own FICO score and each score is likely to get checked. Can you imagine how your scores might suffer if you have an incorrectly-listed debt for $2,000 that shows past due? It could result in a much lower score than you deserve. If you check your report and dispute the account, however, you can increase your score instantly.

Reports Change Regularly

Something is likely to be updated on one of your three credit reports every day. Because they change so much, it’s a good idea to at least check your reports quarterly; however, being even more consistent is recommended.

At any point some incorrect information could pop up on your report that needs to be rectified. If you don’t want this information to show up and want to make sure your score remains in good standing, it’s good to stay on top of any and all changes made.

The Threat of Identity Theft Is Real

A problem that has recently become a threat for millions of people is identity theft. There are predators waiting to steal your information and use it as their own, something that could have a detrimental effect on your life.

If you’ve been the victim of identity theft (credit cards, jobs, mortgages, loans fraudulently taking out in your name), it is likely to show up at some point on your credit report. However, if you never check it, you could have no idea that someone is financially destroying your life.

If you have not yet seen a reason that convinces you that checking your credit report regularly is a good idea, does it help that you can get a credit report with a free score whenever you’re ready? By visiting Go Free Credit today, you get access to a free report and score within minutes. So what are you waiting for? Check yours today!