Five Signs You Need To Check Your Credit Report ASAP
Your credit report tells potential lenders how responsible you are with your credit. It not only lists your FICO score, but also gives information about when you have been late paying certain loans, open credit, and when you have paid off loans.
Lenders rely on your credit report to determine whether to lend you money and how much to lend you. Landlords, rental companies, utility providers, and employers may check your credit before offering you service or employment.
It’s important your credit report is accurate and you know what is included in that report. Here are some signs you need to check your credit report ASAP:
1. You have not checked your report in a year.
You should take a look at your credit report once a year, even if you’re not planning on changing your financial situation. Set a date to do this. (Checking every year on your birthday or on the first day of winter works well.) By checking annually, you ensure mistakes are caught early. You can then appeal those mistakes and have them removed from your report. Check your credit report for free at www.annualcreditreport.com.
2. You’re going to apply for a loan.
If you’re thinking of applying for a car or personal loan, you should check your report. Pay special attention to your FICO score. You will then know what lenders will see when they assess your credit as a part of your loan application.
If you know your FICO score, you can apply for loans requiring a certain score. For instance, if you know you have a score of 790, then you can apply for loans that require a score of 750 or higher. Your higher score may qualify you for lower interest rates or better terms.
3. You’re thinking of buying a home.
You should check your credit as early as possible in the home-buying process. If your credit score is low, you have time to improve it before you apply for a mortgage.
The higher your credit score, the better interest rate you’ll get on a mortgage. And when you’re taking out a 15 or 30-year mortgage, even a small difference in interest rate can mean big savings over the years.
4. You experienced fraudulent activity on an account.
Check your credit report as soon as you discover someone fraudulently used your credit or debit card. If there’s an error on your bank statement that could indicate fraud, you should immediately check your credit report. When hackers access your account information, they can take out other loans in your name; these will appear on your credit report.
The sooner you find out about potential fraud, the easier it is to address. Report any suspicious records to the credit bureau and your bank immediately.
5. You’re getting collection calls on unknown debts.
If a debt collector calls you about a loan you don’t remember taking out, this could be a sign of fraud. Check your credit report to see if the loan appears.
Don’t pay the debt collection company, no matter how demanding it is. Speak with a credit counselor and confirm this loan account’s details.
Your credit report is an excellent tool to help you track your financial prowess and progress. Check it yearly, before taking out any loans, and if you have suspicions of fraud. If you know what’s on your credit report, you’ll have better control of your finances in general.