5 Reasons Why You Should Check Your Credit Report Regularly

Some people don’t check their credit report because they think that it can lower their credit score, but they are wrong.  Your credit score only drops when a FINANCIAL institution pulls your credit.   You can use any of the online credit report companies and pull your credit as much as you like and your credit score won’t change.   Many people who are in the process of fixing their credit HAVE to constantly pull their credit so they can monitor the changes to their credit report.  That’s why we included free credit monitoring with our credit repair service.

Here are 5 reasons why you should check your credit report regularly:

1. To Stay Updated

Why is it important to check credit your report regularly?

The basic reason is to keep you updated with the changes in your credit score. It is important to note that your credit report holds the information that may affect your chance of getting a loan.

Checking your credit report allows you to correct inaccurate information immediately, make sure that all your tradelines are being reported, and you should always pull your credit before you apply for ANY sort of financing.  You don’t want to find out that your credit score has dropped significantly while you are sitting at a loan officer’s desk!

2. To exercise your rights

Under the Fair Credit Reporting Act (FCRA) you have the right to know what is in your file and be told if information in your file has been used against you. It is under this Act that you acquire the right to ask for a credit report.

By monitoring your credit report, you can make sure that no outdated negative information is being reported to any agencies. This also encompasses the rights of identity theft victims and active-duty military personnel.

3. To protect your identity

Identity theft is still on the rise. ID thieves are finding new and more imaginative ways to obtain your personal information and sell it to the highest bidder.

Don’t wait for a call from a creditor you have never heard of to pull your credit and see what is going on. It is necessary to check your credit report regularly to monitor theft signs or any suspicious activities.

If you have been receiving calls or letters about purchases you did not make or notice accounts or addresses you don’t recognize, you should place a fraud alert on your file as soon as possible. This can be done online through the following sites:

a. Equifax – www.equifax.com/CreditReportAssistance
b. Experian – www.experian.com/fraud
c. TransUnion – www.transunion.com/fraud

 

4. To maintain a good credit score

Even if you already have good credit, regularly checking your credit enables you to maximize your good credit when you need it. Making sure all information is accurate and complete allows you to make sure your credit stays good!

Make sure to recognize the accounts and loans on your credit report. Once you find inaccurate information, immediately contact the company that is reporting that tradeline and the credit bureaus and begin the disputing process.

5. To come up with a good credit-building strategy

Aside from including your personal information such as where you live or whether you have filed for bankruptcy, your credit report also includes information as to how you pay your bills. That is why making it a habit to your check credit report regularly is ideal for coming up with a good credit score strategy. Some of the strategies you may try are as follow:

a. Diversify your credit to include auto, mortgage, home equity, and college and installment loans.
b. Use your credit cards wisely and avoid abandoning them.
c. Limit yourself from opening new credit cards
d. Keep your credit card balances LOW. If you are near your limit, its time to:

  • Get another job to help pay down your debt
  • Apply for low interest credit cards so you can do balance transfers
  • Create a budgeting program that will help you pay down your balances

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Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

4 Comments
  1. Now that i know the main reasons why it’s important to review my credit report on a regular basis, i’ll make sure that i get a credit report every 4 months at least.

  2. I like this. But the reality remains that, unless you live a life of extreme self sufficiency, their contents have a significant impact on your life and finances. So I regularly check mine.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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