Why You Should Check Your Credit Report

A Credit Report is a financial document or record that you would need whenever you need to take out a loan or mortgage or when renting an apartment.

It contains important information with regards to your financial situation such as loans you’ve previously taken and payments you’ve made. It reflects if you were able to pay your mortgage or loans on time or if there were lapses on your payment. A credit report can also help you monitor your financial situation and thus improve on it as well. Credit reports are easily available nowadays. In fact, majority if not all credit reporting agencies offer free annual credit reporting. They can also provide you with online credit report, making it easier for you to obtain one.

The Importance of Checking Your Credit Report

Since credit reports are important, it is recommended to check your credit report regularly. There are many different credit reporting agencies around so it will not be difficult to get annual credit reporting. You can request for free credit report at any credit reporting agency.

Whether you are applying for a loan or mortgage or not, it is important to check your credit report at least twice a year. You need to do this so that you can avoid problems in the long run. Here are two important reasons why you need to check your credit report regularly.

  • Check for identity fraud

    When you get your free credit report, check for signs for possible identity theft. Identity theft has risen drastically in recent years and more people are becoming victims of it. Identity thefts would steal your good credit standing and open various accounts under your name, putting you at risk of paying huge amounts of money that you did not actually get or use.

    When a new fraudulent account is opened under your name it will appear on your credit report and you can immediately call the attention of the lender and report the crime.

  • Accuracy

    With your free annual credit report, you will be able to scan and check if all information stated is true and correct. Make sure that your personal details are correct. This includes name, address (current and previous), employers (current and previous) and social security number. Check also if your credit information is correct or if there are any missing or duplicate accounts and accounts that you did not open.

Financial Stability

Your credit report shows your financial stability. Your annual credit reporting can determine whether or not you are eligible to take out a loan or mortgage. On the other hand, if you have less than impeccable credit score, checking your annual credit report can also help you identify lingering problems that puts you in that spot and deal with it accordingly. But whatever your annual credit report says, it is important to check your annual credit report.

Watch the Video on Why You Should Check Your Credit Before Buying a Home