Many people are well informed about the perks of maintaining an excellent credit rating but only a few of them bother to check their credit reports at least once every year. Credit reports contain detailed information about your credit history. Most people believe that a credit report is only meant for creditors to determine if you are eligible for a being approved for a loan, mortgage, and insurance agreements. Reviewing your own credit report is also important to make sure that there are no errors in your credit report that could, perhaps, affect your creditworthiness in the future.
Most advisors would recommend reviewing your credit report at least once or twice a year. The great thing about it is that you can get a detailed credit report for free. More than 60% of credit card holders pay for credit reports when they can obtain them for free. Visit CafeCredit for more information about obtaining free credit reports from the three major credit bureaus (Equifax, Experian, and the TransUnion). If you are still not convinced on considering this option, then better read about the top 3 reasons why you should get a free credit report now.
- Resolve identity theft issues.
Reviewing your credit reports regularly can help you detect early signs of identity theft including unauthorized transactions and unknown account numbers or names that are linked to your account. Monitoring your spending habit at least twice a year, especially if you frequently use your credit card for online transactions, can help you pinpoint questionable purchases that are charged to your account. Credit bureaus offer credit reports for free; so make sure that you always take advantage of those to avoid becoming a victim of identity theft.
Fraudulent transactions in your credit accounts can have a negative impact on your credit score. If you have detected one, you must immediately report the issue to any of the credit reporting agencies. It might take a few months to resolve the issue and restore your account but it can definitely save you from becoming in debt for purchases that you didn’t authorize.
- Report inaccurate information.
With the immense volume of transactions and accounts managed by the credit bureaus, it is not usual for some account holders to encounter some errors in their credit reports. Always check for any errors on your name, address, contact numbers, and the value of your purchases too. A single error in the numbers can definitely make a big difference if not resolved immediately.
If you have found any inaccurate information in your personal credit report, call an authorized credit agency right away. A credit report is usually accompanied with guidelines and contact information for issuing a complaint.
- Maintain an excellent credit rating.
Once you are able to track all of your transactions through a credit report, you will be able to monitor your spending habits as well. Checking the accuracy of all information included in the report will also help you maintain an excellent credit score. A good credit score can increase your chances for being approved for a loan, mortgage, and insurance agreements. The higher your credit score is, the lower the interest rate that will be charged to your account and the more favorable is the loan offer to you.