There are plenty of great reasons to check your credit report. Since it contains all of the information there is to know about you financially, making sure it’s an accurate representation of you is absolutely essential to ensure you receive the best possible rates and terms on loans. If your credit report contains a lot of negative information, it can also prevent you from getting a job, an apartment, insurance, and even utility service. Because it’s so important, millions of people subscribe and check their scores regularly at the OTL ScoreSense.com website, a credit monitoring service for consumers.
Listed here are some of the more important reasons to check your credit report:
Get Better Credit Scores – When you check your credit score, you may find that the numbers are lower than expected. Starting the process to increase the scores in order to get loans at competitive interest rates, or to get a loan at all, requires you to check your credit report at each of the three reporting agencies to see why your score is low. Once you know why your scores are low, you can start reversing the trend.
Watch for Identity Theft – An indication of identity theft is an excellent reason to check your credit reports. With the world now being “online,” identity theft is a common occurrence. Once you know how to check your credit reports, looking for unauthorized credit accounts or inquiries made to your report from sources where you never applied for credit can be great indications that your identity has been stolen – and you can put a stop to it before any further damage is done to your credit worthiness.
Correct Inaccuracies – Credit reporting is done by humans, and humans make mistakes. When you check your credit reports, especially the first time, you might find one or more errors. That’s not uncommon. That errant information can prevent you from getting a loan when a finance manager pulls your credit report to check your credit score. Finding and fixing incorrect information on your report can often boost your credit score without taking additional action.
Identify Credit Card Fraud – Similar to identity theft, but much more likely and easier still, is having someone open a credit card account using your name and other personal information. Unless you check your credit, you may be unaware its happening until your score drops. Then, when you do finally check your credit report, you see that accounts you didn’t authorize have been opened, but bills have never been paid, resulting in negative credit information appearing in your reports.
You’re a Co-Signer – When you co-sign a loan for someone else, you are equally liable for the loan, and the loan appears in your credit report. If the other person stops paying, and you don’t check your credit regularly, the loan default will end up on your report, which could take years to fix.
When you know how to check your credit reports, and do so regularly, you are unlikely to encounter surprises, and you can fix bad credit scores and detect fraud and theft. Check your credit report regularly to put yourself in the best financial position to get loans at great rates, and not get turned down for a job, an apartment, or insurance in the process.
To find out how you can check your credit reports and credit scores regularly, and start down the path to improving your scores if they are low, subscribe to ScoreSense at www.ScoreSense.com.