Why Check Your Credit Report?
Years ago, checking your credit report was a hassle. After all, it involved mailing in a form to each of the three credit reporting bureaus then waiting for a response. These days, it’s easy to get copies of your credit reports; they are available online in mere seconds. Therefore, there’s no good reason not to check your credit report regularly – and plenty of great reasons to do so. Learn about a few of the best reasons to check your credit report below.
Keeping an Eye Out for Errors
Whether a debt is erroneously reported as unpaid by an old financing company, or if a computer glitch causes a bad mark to appear, errors happen on credit reports all the time. The sooner you catch those errors and work to correct them, the less damage will be done. Nipping errors in the bud is imperative if you want to keep your credit in good standing, so check your credit report early and often.
Avoiding Identify Theft
Identity thieves love people who don’t check their credit reports regularly; after all, it gives them full license to do whatever they want to with their victims’ financial information. By monitoring your credit report on a regular basis, you can keep your eyes peeled for suspicious activity. If you see any, you can work to find out what’s going on right away. Your identity thief won’t be able to get too far when you’re conscientious about checking your credit report.
Applying for Loans, Mortgages and Credit Cards
You should always know what your financial situation looks like before applying for loans, mortgages or credit cards. If you need a new car, for instance, you’ll be able to negotiate your interest rate more effectively when you know what your credit report currently looks like. The same thing is true about mortgages and credit cards; if you’re uncertain about what’s on your credit report, you could end up with less-than-spectacular deals. Why risk it? Checking your credit report is easy.
Checking on the Status of Something That You Cosigned
Cosigning can be a very risky proposition. If you have cosigned a loan for someone in the past, you can keep tabs of what it’s doing to your credit by checking your credit report frequently. After all, the person may not be upfront with you about whether or not they are making their payments on time. It’s your financial security that’s on the line, so get into the habit of peeking at your credit report from time to time.
Gauging the Aftereffects of a Divorce
A major life change like a divorce can wreak havoc on your credit. It’s vastly preferable to see what’s going on as it happens instead of waiting for the dust to settle. With careful credit monitoring, you can come out the other side of your divorce with your financial information mostly intact.
The preceding reasons to check your credit report regularly are just the tip of the iceberg. The truth is, there are countless reasons for doing so. Just make it a habit – you’ll be amazed at how much easier it is to take care of your financial situation.