5 Reasons Why You Should Check Your Credit Report Regularly

Credit reports are long and complicated.

It can feel like a pain to get a hold of them (although requesting your free annual report is a cinch).

So why is it so important to stay on top of the details in your credit report? Why do you have to know what’s contained in those pages?

Here are 5 of the biggest reasons why you should check your credit report regularly (at least once per year, preferably more).

1. Find errors in your report

As many as 40 million Americans have errors in their credit reports.

You won’t know if they are there unless you check your credit report. Also, don’t fret too much if you find an error; there are steps you can take to repair your credit, all by yourself. And if you don’t have the time or energy for DIY credit repair, there are reputable credit repair companies out there ready to help. (Ask yourself these 4 questions before hiring a credit repair company.)

2. Uncover identity theft

Sometimes an error isn’t an error at all; it’s identity theft.

You might not know that someone has stolen your identity until a collection agency is hounding you for a loan you never took out. If you’re regularly checking your credit report, then you can at least discover identity theft before it becomes a huge problem.

3. Make sure your credit is in good shape before you apply for a loan

If you’re planning on taking out a major loan (such as a home mortgage), it’s important to be proactive and check out your credit report before you head over to the mortgage lender’s office. Not only will this save you from embarrassment, but it will also help give you a picture of your finances so you have a better idea of how much home you can afford. And if your credit score is a little low, you can take steps to improve it, and potentially save thousands of dollars in interest over the course of your loan.

4. Find out exactly how much debt you have (it might be more than you think)

Your credit report is really the only document where you can see all your debt and open accounts spread out in one place. This can be a powerful tool in helping you craft a working budget (to help you get out of debt and gain financial independence).

5. Follow your credit repair success!

As you work to repair your credit, you’ll need to regularly check your credit reports to chart your progress. It can be enormously encouraging when an item you disputed has finally disappeared, and each success – no matter how small – deserves to be celebrated!

For more credit repair advice, check back with our blog, which is updated weekly.

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