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Why Check Your Credit Report?

About Credit Reports > Why it is important to Check Your Credit Report

Why it is important to check your credit report (summary)
Your credit profile, will determine how easy or difficult it is to get bank loans, auto loans, personal loans, credit cards or any other form of financing. Your profile can also determine what interest rates you pay, and in some, whether you get a job or able to obtain a larger life insurance policy. Your credit profile with show your prospective creditors a summary of your financial history on file with the credit bureaus.

Six Reasons to Check Your Credit Report Regularly
Ideally, your credit report is an accurate, up-to-date reflection of your credit history. However, since we don't live in an ideal world, there are many reasons that your credit report could contain inaccuracies that might prevent you from receiving the credit you deserve. Therefore you should check your credit report regularly to spot and correct inaccurate information (79% of credit reports contain errors).

Five Six Reasons to Check Your Credit Report Regularly
Inaccuracies & Mixed Credit Files
Tracking Payments
Identity Theft
Credit Fraud (Unauthorized Charges)

Six Reasons to Check Your Credit Report Regularly
Here are the top reasons why you should make a practice of regularly reviewing your credit report:
1) Inaccuracies & Mixed Credit Files          (back to top)
Many inaccuracies on a credit report can be the result of simple human error, and are therefore are not difficult to dispute. Of course, if you don't order your credit report, you might never know about it. Whether the inaccuracies relate to payments not credited, late payments, or data mixed in from the credit file of someone else with a name similar to yours. The good news is you can take action to keep your report accurate. You will want to contact the credit bureau to dispute inaccurate information promptly.
2) Tracking Payments          (back to top)
One of the most important elements of credit is a demonstrated history of on time payments. Once you send the check though, anything can happen--a delay in the payment being received can kick you over to a 30-day delinquency. If you call your creditor and explain the situation, they might adjust the information. Of course, if you don't read your credit report, you won't necessarily know which payments are being received and reported properly. 
3) Identity Theft         (back to top)
This issue alone is reason to order your credit report immediately. Identity theft is an insidious crime, involving a thief who assumes your name to open new accounts, divert your card statements to another address, and run up all sorts of bad debt without you ever knowing about it until collectors come calling. Over time, identity theft could jeopardize your ability to obtain further credit. The best way to catch a thief who is using your name is by getting a copy of your credit report, which will show you if there are accounts listed you know you haven't opened. For example, if a thief has intercepted a pre-approved credit card offer in your name and sent it in with a change of address, your credit report will include the account. 

Resource: Federal Trade Commission Identity Theft Center at:

4) Inquiries          (back to top)
If you're shopping around for a loan or more credit, you should know that when creditors check your credit, it places an inquiry on your credit report. Inquiries can add up, which is often interpreted as a negative by creditors. For this reason, too many inquiries can actually make getting credit more difficult. Moreover, if you didn't authorize someone to look at your credit report and they did, they may have broken the law. If you would like to see who's been looking at your credit you can get a free credit report.
5) Credit Fraud--Unauthorized Charges           (back to top)
Credit fraud involves the theft of your credit card or account number to make unauthorized charges to your account. Though consumers are protected financially from this abuse, other creditors may take note of all this activity and decide to raise your interest rates or refuse to grant you a loan. Ordering your credit report will help you catch new activity on accounts that you haven't been using, or may have closed. 
6) Right Now It is FREE! Get a Free Credit Report
When it comes to managing your credit worthiness, your credit report is your best resource. Ordering your credit report gives you the opportunity to manage your credit wisely today, while planning your credit strategy for achieving future goals--a credit-savvy move every consumer should make! Get a Free Credit Report


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