Most people don’t give any thought to their credit score or what’s on their credit reports unless they’re about to apply for new credit. Some people think that checking their own credit may hurt their credit score, which isn’t true. Here are a few reasons why you should check your credit reports.
Managing Your Personal Finances
Balancing your checkbook and reviewing credit card statements are both parts of managing your personal finances. Just like you need to know what you have in the bank and what you owe, you also need to know what’s showing on your credit report.
Knowing Where You Stand
Before applying for new credit, you should make sure you have a good idea of where you stand. The last thing you need is for a potential lender to see something on your credit report before you do. Potential lenders aren’t the only people who may see what’s being reported by the credit bureau. Insurance companies, cell phone companies, potential employers, and landlords may all look at your credit report before deciding whether to do business with you or on what terms. Avoid unpleasant surprises by knowing exactly where you stand.
It’s Free
Never pass up an opportunity to get something that can benefit you when it’s free. Each year, consumers can request a credit report from each of the three credit bureaus at no cost to them. The easiest way to do this is by going to AnnualCreditReport.com. One way to remember to do this each year is to schedule it around the time of something you do every year such as around your birthday, a holiday, or your annual physical.
Be Alerted to Identity Theft
Each year, thousands of people are victims of fraud or identity theft. When you take the time to review your credit reports each year, you may notice addresses or accounts you don’t recognize. Reviewing your credit reports and your credit card statements may help you to notice charges you didn’t make. This can give you a chance to catch fraudulent activity or identity theft early before more damage is done.
Credit Report Errors are Common
People are often surprised to find out how common errors on credit reports are. There are many possible ways that information may be reported incorrectly, which could be as simple as a misspelling of your name or more serious, such as accounts reporting as paid late when you’ve always paid on time. Inaccurate information on your credit report can bring down your credit score and can cost you thousands of dollars in interest charges. That’s why it’s so important to know what’s on your credit reports. If you do find errors, it’s very important to dispute them right away.
Being Proactive About Your Credit
When your credit can affect so many areas of your life, it makes sense to check to make sure your credit reports are accurate on a regular basis. Dovly is an AI credit engine that can help you dispute any errors you find on your credit report. Try it risk-free with our free membership tier. Get in touch with Dovly today.
