Credit Report Checks Recommended Each Year

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Did you know that most Americans aren’t checking their credit reports? Somewhere near 65% haven’t seen their reports in some time.

You may be wondering what’s so important in monitoring your credit reports while others are probably shaking their heads in sympathy for these individuals. Monitoring your credit report is an important aspect all of us should be doing regularly.

Why Check Them At All?

You’ll want to check your credit reports for a number of reasons. The main one would be because if you’re wanting a loan for a home or vehicle or a new credit card, your credit report will be one of the most important factors. If you don’t know what’s on your report, then you won’t know why you’re being denied that loan or credit card.

Even if you have some idea of what’s on your report, you don’t know if there’s something that needs your immediate attention. You’ll want to know if someone has attempted to steal your identity or if there are any issues that you can improve before you seek that loan or credit card.

Whatever your reasons are for pulling your credit report, it’s a good idea that you do it because you want to know what’s on there and possibly learn more about your own spending habits and how you can improve them. If you’re wanting to improve your financial situation, you can follow these steps:

  1. Obtain copies of your credit from each credit reporting bureau.

With these copies, you can check your personal information, your payment history, the amount of credit you’ve used and how much you have total, the types of accounts you hold, how old your accounts are, and the number of hard inquiries you’ve acquired in the last few years. Since you’re entitled to free copies of your reports, you can obtain them from visiting annualcreditreport.com for all three bureaus.

  1. Accuracy is key.

Based on all the information you can find laid out above, you’ll want to check off each one for their accuracy. If you can find where the inaccuracy has occurred, you can find a quick resolution when you challenge that information on your report. You want to do what you can to remove all red flags that could point to identity theft or you could find yourself with a battle that’s not the easiest to win.

  1. Create a budget to repair your finances.

The way you build your budget should start by sitting down with everyone that’s concerned about the finances of the household. You’ll want to discuss the money that’s coming in compared to what’s going out, trying to find a way to keep the in above the out, saving that amount for other needs. The goal is that the household embraces this budget and does what’s necessary to curb unnecessary spending while saving wherever possible to reverse the problems the household’s money is having.

Checking your credit report for inaccuracies and then using that information to create a budget can help you repair and improve your financial situation.

The knowledge you can gain from your report can help you know where  you save rather than spend, or if you need to spend, spend wisely.

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