Most people today don’t really think twice before whipping out their credit card to pay for something. Why should they? They’re such a ubiquitous thing that it might seem silly. It’s convenient and helps you build credit. But credit cards and your credit report have a pretty close connection to one another, and can be affected long into your retired years. Have you recently given much thought to your credit report?
Ensure Everything is Correct
Human error impacts virtually everything in life at some point in time or another, including your credit report. Whether it’s an honest mistake or something more sinister in nature, mistakes on your credit report can do some real harm to your financial record. They can hurt your options for taking out various loans too. It’s always a good idea to check your credit report at least once a year and carefully go over it to make sure everything is accurate. If you see any errors on your credit report, dispute the errors as soon as possible.
Uncover Potential Fraud
While we’d like to believe that people are naturally inclined to be good, there are plenty of individuals out there that make us want to rethink that point of view. It’s easier than you might think to become an unwitting victim of fraud, specifically identity theft. Checking your credit report at least once a year can help you identify red flags that indicate your identity has been compromised. For instance, unfamiliar accounts on your report can be a sign of identity theft. If you see anything you’re suspicious of, be sure to call the creditor and talk to someone in their fraud department right away.
Take Control of Your Credit Score
Having a good credit score can make it so much easier to save money on larger purchases like cars and even a home. It can be hard to really understand what you should be doing to improve your credit score if you have no idea what your report looks like. By checking it at least once a year, you can get a better idea of how you’re impacting your score. From there you can make changes to your financial behavior to make it even better.
If you really want to take control over your life, one of the things you absolutely must do is check your credit report a minimum of once a year. Checking it even more frequently is better if you can manage it! In this case, the fact of the matter is that what you don’t know definitely can hurt you.
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