4 Reasons Why You Should Check your Free Credit Score
Many people do not even bother with checking their credit score. Some say: âWhy even bother with checking my credit score? Isnât that only helpful to know if I am applying for a loan?â Part of this assumption is true; however, knowing your credit score is important for other things such as creditor accuracy and understanding your credit worthiness.
Credit reporting and scoring is manually typed in by humans, which means that there is plenty of room for errors; sometimes not all of the information is accurate or some information is left out.
Here are the top 4 Reasons you Should Check your Free Credit Score:
1. Prevent Fraud & Identity Theft. Regularly reviewing your credit report can give you the ability to make certain that no loans or account have been opened in your name. One would be surprised how often identity theft occurs where people take out loans using unsuspecting peopleâs personal information. New loans or accounts opened in your name that you did not authorize are the first clue that someone may have stolen your identity. You can help monitor and combat fraud and identity theft by regularly reviewing your Free Credit Score.
2. Spot Possible Credit Bureau Errors. Believe it or not, the information the top 3 credit bureaus transcribe is not always 100% accurate and true. The reason is because the information they use to develop your credit report is given and provided by humans; again, this leaves room for errors and inaccurate information. For example, you may have taken out a car loan for $15,000 and he person who reported the loan to the credit bureau may have accidentally added an extra zero to the amount and sent it over as $150,000. Obviously, this is a big mistake and can impact your credit score and standing dramatically.
3. To Reconcile the Data from the 3 Credit Bureaus. this reason is especially important because the 3 Credit Bureaus in the U.S., TransUnion, Experian, and Equifax, do not share or collaborate credit information. Because of this, your credit information is not reconciled or compared against other credit bureaus information to evaluate accuracy. This means that there is plenty of opportunity for potential errors. Making sure that the information is complete and accurate will help you better understand your credit standing and can give you the data you need to fix problems and errors.
4. Make Sure No Errors were Reported on Creditors Behalf. The information lenders and creditors supply to the credit bureaus is what ultimately shapes your credit report. Since almost all of the information and data is entered by actual people, there is a good chance for mistakes being made. The mistake can negatively affect your credit score and standing. We recommend that you check your free credit score regularly to ensure that lenders and creditors are forwarding accurate and correct information to the credit bureaus. In fact, it is recommended that everyone should check their credit report and credit score at least once a year. If you are applying for a car loan or home mortgage, then perhaps you should check it a little more often to make certain that your credit worthiness is good enough to apply for these types of loans.
Make Checking your Free Credit Score Habitual
Now that you know the top 4 Reasons you Should Check your Free Credit Score, it is important for you to understand that making it a habit can be beneficial. This will give you an opportunity to review your credit standing to make certain that your credit information is accurate and contains no errors. Also, we recommend that you check your credit report about every 4 months (or 3 times per year) to monitor the potential of fraud and identity theft.
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