If you’re clueless about your credit score, it’s likely because you have never checked your credit report regularly!
Maintaining a credit report allows you to spot significant issues like identity theft or credit card fraud and helps you identify areas that need improvement in your credit score.
Further, if you reside in New York, you can always contact a company providing credit repair in NYC. They are experts and professionals who can handle any legal issues and disputes on your behalf.
So, let’s understand how regularly checking the credit report can leave a lasting impression on your financial health.
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Why Is It Crucial To Maintain Your Credit Report Regularly?
Checking your credit report is a healthy practice to stay alert to identity theft’s potential risks and dangers. It helps you in the following ways:
Protection Against Frauds and Identity Theft
Keep checking your credit reports to identify frauds such as an unfamiliar address, unusual entries of new credit card accounts, or any recent payments made through an inactive credit card.
Dispute any Error in the Credit Report.
Sometimes the data is misleading or misrepresented in the credit report, damaging your credit score. For example, a lender has mistakenly reported your payment as “late.” If you would be lucky enough to spot the error, it can be disputed immediately with the credit reporting agency.
Spot the Inaccuracies
Sometimes, it isn’t a fraud or a misrepresentation but just a minor typographical error such as an incorrect social security number or a transposition error in your address. If you keep checking your credit report, you can figure this out immediately and send a request to remove it. For your safety, the real SSN (Social Security Number) is never reported in your Experian credit report.
Ensure Timely Payments are Recorded
For someone currently building credit, it is crucial to ensure that your credit agency is reporting your payment on time. Check your credit report regularly to make sure that’s happening.
Take Action to Improve Your Credit Score
The most significant benefit you can avail for checking your credit report is your room for improvement. Figure out the weak areas, whether a late payment or late reporting. Make sure to dispute the valid discrepancies on time to improve your credit score.
And who doesn’t know the importance of having a good credit score? Be it applying for loans at lower interest rates or getting an apartment on rent, credit scores are crucial to build your credibility.
Learn to Check Your Free Credit Report
Credit reports are for consumers. Thus, they are easy-to-read documents. There are no codes, Jargon, or ambiguous language so that the reader will understand.
Visit annualcreditreport.com- the official website sponsored by the three major credit bureaus to access your reports from all three credit bureaus. You have to follow a few simple steps to receive your report online. You can receive your online report by mail or phone within 15 days of requesting it.
How often should you review your credit reports?
Rod Griffin- a senior director of public education and advocacy for Experian, says, “At the bare minimum, you should review your report at least once a year.”
However, you can review it many times depending on satisfactory circumstances. Reviewing your credit report more than once will give you a clearer picture of your credit history and the number of credit accounts you have recently opened.
In a few cases, you may want to check your credit report even more frequently, such as:
- Three months before making a BIG purchase like a car or a house on credit.
- After you get a notification for a violation or policy breach.
- When you’ve experienced identity theft or fraud.
- After paying off your loans.
You can do that by alternatively requesting the three free credit reports from the major credit bureaus – Equifax, Experian, and TransUnion without paying any extra fee.
It is also important to note that regularly checking your credit report doesn’t affect your credit score because it is called a soft inquiry. However, please beware of the activities counted as hard inquiries, which can affect your credit score.
Final thoughts
The first step to being financially independent is to keep in check on your financial health. You should avail your right to check your credit reports issued by the credit bureaus and dispute any invalid information if it has it. Knowing your credit report’s details will help you make informed decisions.