When To Check Your Credit Report

How often should you check your credit report? The simple answer is this: once a year. However, everyone is an individual with different circumstances, so one size does not fit all. For those with good credit, once a year may be enough. However, in this economy, many people are opening more accounts and dealing with other situations that would call for more frequent credit report checks. It is important to know when to check your credit report.

Accessing your credit report regularly can actually help to detect identity fraud beyond simply checking your monthly credit card bills for purchases you did not make. The thief that uses the account you already know about is not as difficult to catch as the one who opens new accounts with your identity. This thief can be detected by checking your credit report, because the credit report details new accounts opened with your identity.

Receiving a phone call about debt you didn't know you owed is not the best way to find out your identity has been stolen. You will have a much better chance of dealing with identity theft if you detect it early on, by checking your credit report before the problem gets out of hand. There are also other situations in which it is important to check your credit report.

Perhaps you have had credit problems in the past and you are trying to work your way out of them. Or, perhaps you have excellent credit and would like to keep it that way. By checking your credit report and being aware of what creditors have reported and the accounts that are there, you will be able to rectify your bad credit or maintain your current credit score.

Applying for a loan is another situation where you need to know what is on your credit report. You will want to know what reason a creditor may have for denying you a loan. If you are denied for a loan, it could be something as small as a twenty dollar debt from four years ago. If you are rejected for a loan, you are entitled to pull a free credit report, which you should look over to ensure that all information is correct.

Because credit reporting bureaus are made up of people, it is possible that a human error can occur in your credit report. If you find an error, you have the legal right to challenge that error. Credit agencies are required by law to look into your challenge to ensure accuracy on your report.

You have the right to know what your credit report says about you. Whether you are looking into getting a loan, or just trying to make sure your identity has not been stolen, it is important to keep aware of what information is on your credit report.

You have the legal right to pull one credit report per year for free. Don't pass up this right. And remember, if you are looking into applying for a loan, trying to improve your credit score, or just looking out for identity fraud, pull your credit report frequently enough to make sure your credit information is accurate.