3 Reasons You Should Review Your Credit Report Every Year

Credit Report

Most people don’t give their credit report a second thought unless they are planning to borrow money. Even then, they may focus more on the calculated score. That can be a big mistake when it comes to your financial health. Consider these three reasons why you should check your personal credit report at least once every year.

1. To Stop Identity Theft

The statistics on identity theft should be enough to spur you to check your credit report. You can be vigilant in watching bills and using online security measures and still fall victim to predators. However, you do have tools to limit exposure and risk. One of the best ways to find out about potential identity theft problems is to review your credit report by getting a free copy from each major reporting agency every year.

2. To Spot and Correct Errors

Let’s face it, mistakes can happen just about anywhere. Unfortunately, that includes your credit report. It is a good idea to check yours for errors at least once a year. Even a small mistake can have a big impact on your overall financial situation. It can even impact your job prospects. Many companies run a credit check for employment purposes. You don’t want to get halfway through the hiring process on your dream job only to find out a mistake on your credit report held you back.

3. It Can Help You Track and Improve Your Credit Score

Mistakes or bad accounts that appear in your record lower your credit score and can cost you a lot of money in extra interest every year. Checking your report and resolving any issues is an excellent tool for managing your credit. It gives you a complete picture of borrowing and payment histories and provides insight into your creditworthiness.

There are countless reasons to check your credit report at least once each year It helps you track your credit history, can minimize the threat of identity theft and fraud and is a great way to spot unintentional errors that might impact your creditworthiness.