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Five Reasons to Check Your Credit Report Regularly
In much the same way that a resume displays your work experience to a prospective employer, a credit report provides
prospective creditors (and in some cases employers and insurers too) with a detailed picture of your credit history.
And like a resume, your credit report can influence whether you will receive what you are applying for.
Credit History
Ideally, your credit report is an accurate, up-to-date reflection of your credit history. However, since we do not
live in an ideal world, there are many reasons that your credit report could contain inaccuracies that might prevent
you from receiving the credit you deserve. The good news is you can take action to keep your report accurate. Here are
the top five reasons why you should make a practice of regularly reviewing your credit report.
Inaccuracies & Mixed Credit Files
Many inaccuracies on a credit report can be the result of simple human error, and are therefore are not difficult
to dispute. Of course, if you do not order your credit report, you might never know about it. Whether the inaccuracies
relate to payments not credited, late payments, or data mixed in from the credit file of someone else with a name
similar to yours, you will want to contact the credit bureau to dispute inaccurate information promptly.
Tracking Payments
One of the most important elements of credit is a demonstrated history of on time payments. Once you send the check
though, anything can happen — a delay in the payment being received can kick you over to a 30-day delinquency.
If you call your creditor and explain the situation, they might adjust the information. Of course, if you do not check
your credit report, you will not necessarily know which payments are being received and reported properly.
Identity Theft
This issue alone is reason to order your credit report immediately. Identity theft is an insidious crime, involving
a thief who assumes your name to open new accounts, divert your card statements to another address, and run up all
sorts of bad debt without you ever knowing about it until collectors come calling. Over time, identity theft could
jeopardize your ability to obtain further credit. The best way to catch a thief who is using your name is by getting
a copy of your credit report, which will show you if there are accounts listed you know you have not opened. For
example, if a thief has intercepted a pre-approved credit card offer in your name and sent it in with a change of
address, your credit report will include the account.
Inquiries
If you are shopping around for a loan or more credit, you should know that when creditors check your credit, it places
an inquiry on your credit report. Inquiries can add up, which is often interpreted as a negative by creditors. For
this reason, too many inquiries can actually make getting credit more difficult. Moreover, if you did not authorize
someone to look at your credit report and they did, they may have broken the law.
Credit Fraud — Unauthorized Charges
Credit fraud involves the theft of your credit card or account number to make unauthorized charges to your account.
Though consumers are protected financially from this abuse, other creditors may take note of all this activity and
decide to raise your interest rates or refuse to grant you a loan. Ordering your credit report will help you catch
new activity on accounts that you have not been using, or may have closed.
Credit Report Resource
When it comes to managing your credit worthiness, your credit report is your best resource. Ordering your credit report gives you
the opportunity to manage your credit wisely today, while planning your credit strategy for achieving future goals--a credit-savvy
move every consumer should make!
