Is It Necessary To Check Your Credit Report Consistently? |
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Regular viewing of your credit report is absolutely essential as the credit report is the mirror which prospective lenders (in some cases, employers and insurers too) view to get a complete picture of your credit history. You must check credit report consistently to be aware of the shortcomings which might influence the decisions of the prospective lenders, employers or insurers. It is only when you know something is wrong that you can take remedial measures. Nothing is perfect in this world and your credit report is no exception. However accurate and up-to-date it might be in reflecting your credit history, there is still that odd chance of an inaccuracy creeping in and depriving you of the loan, job or insurance you deserve. So check your credit report consistently to take timely action to keep it accurate. Below are five important reasons you should check your credit report consistently. 1) Mixed credit files and inaccuracies Inaccuracies due to human error could be in the form of payments not credited, late payments, or data mixed in from the credit file of someone else with a name similar to yours. These can be disputed and your credit bureau will take steps to correct the mistake but if you don't check your credit report, you won't know about them! 2) Keeping track of payments The most important aspect of a credit report is the record of timely payments. You might have sent your check on time, but there could have been a delay in payment being received, which puts you over a 30-day delinquency due to no fault of yours. If you don't check your credit report consistently, you won't know which payments are received on time and you won't then be able to call and convince the creditor to adjust the information. 3) Identity Theft Check your credit report immediately because identity theft is on the rise and you might already be a victim. Identity theft involves opening a new account by a thief who assumes your name and diverts your card statements to another address and runs up all sorts of bad debt without you ever knowing about it. That is, until collectors come calling. Only by checking your credit report will notice any listed accounts that you haven't opened. Moreover your credit report will include an account if a preapproved credit card offer in your name is intercepted by a thief, who sends it in with a change of address. Gradually, identity theft could jeopardize your ability to obtain further credit. 4) Inquiries Too many inquiries on your credit report can have a negative impact on your creditors and thereby make it more difficult to obtain credit. It is all the more reason why you should check credit report as unauthorized checking of your credit report by someone else is illegal. Creditors normally check your report if you approach them for a loan and this places an inquiry on your report. 5) Credit Fraud--Unauthorized Charges Anyone who gets hold of your credit card or account number can make unauthorized charges to your account. Consumers are, however, protected financially from this type of theft, but other creditors might take note of this activity and consider you as a risky proposition and thereby they may raise your interest rates or refuse to grant you a loan. Checking your credit report is important as you can catch new activity on accounts that you haven't been using or may have closed. Your credit report is your best resource where management of your creditworthiness is concerned. You can manage your credit wisely and become aware of any untoward activities on your report only if you check your credit report consistently. It will give you the opportunity to take remedial actions on time for achieving your future goals. |
