Check your credit score ... it's an essential financial health task!
Just as you go to the dentist for that six-month checkup, so must you check your credit score, for good financial health. Using that analogy, think about this: wouldn't you rather find a small cavity brewing at six months, rather than requiring a root canal through sheer neglect? Everyone is entitled to receive a free credit report once a year, but these days, it's smart to check your credit report as frequently as you see your dentist. With all the identity theft that's been going on, it doesn't take long to have your credit rating ruined! In the old days, very few people checked their credit report at all. When they applied for credit, they expected to be approved, assuming they paid their bills on time and had sufficient income to cover the debt. That's all changed. Read on and see how and why you should check your credit score on a regular basis.
Since you're entitled to a free credit report each year, there's no reason not to do it. It doesn't cost a cent and you gain peace of mind, knowing that your credit report is accurate. It's far easier to correct misinformation and address trouble spots early on. If you neglect to check your credit report, you could end up with a mess that will take months to straighten out, during which time you'll have difficulty taking out a loan of any kind. While you may well feel that your credit history is no one else's business, be aware that prospective employers sometimes run a credit report on individuals applying for work. If you rent your home, landlords and property management agents do, most often, obtain a credit report before renting out property. So it's easy to see how failing to check your credit score could wreak havoc with your life!
Checking your credit report and score every six months should be sufficient to keep yours accurate. The fee for this essential financial report is nominal and well worth the few dollars it costs. You can obtain a copy online almost instantaneously, but you do want to be careful and assure that your connection is secure. You can easily ascertain this just look for the little 'lock' icon at the bottom right-hand side of the browser page. If you prefer to check your credit score offline, just go to your local credit reporting agency and get a hard copy on the spot.
Your credit score appears at the top of the first page of the credit report, followed by an itemized listing of all of your current debts, including any delinquencies, as well as those debts which have been paid. When you check your credit score, here's what you need to know: a credit score of 580 or less is not good, while a credit score of 700 is excellent.
First, look over each item to be sure first, that the debt is legitimate, and then, that the amount owing for each debt is correct. You'd be surprised at the number of inaccuracies that appear on people's credit reports. If you do find discrepancies, follow up with the creditor immediately to iron it out. If you've been listed as delinquent and in fact, were not, send your proof to the creditor and ask them to correct their records and remove the inaccuracy from your credit report. Just a few inaccuracies, once corrected, can significantly impact your credit score. Creditors are required, by law, to correct your credit report data within 30 days. If a debt is listed which isn't yours, the creditor must either provide proof the debt is yours or remove the item entirely, again, within 30 days.
You can now see how and why you must check your credit score at least twice a year, for your good financial health!