Feb. 24, 2015

Do you check your credit regularly? They’re all kinds of unfortunate outcomes that could happen if you don’t. But fortunately, it’s easier and less expensive to monitor your credit than ever.

 

If you’ve never thought about doing it before, here are several excellent reasons why you should begin doing it now:

 

1. To Detect Errors in Your Credit Reports

 

According to the Federal Trade Commission, 20% of consumers have errors in their credit reports. That means that there’s a one-in-five chance that there are errors in yours. The only way you can know that there are errors, and what those errors are, is if you check your credit regularly.

 

Here’s something else that you need to know: the sooner that you become aware of errors, the easier it is to correct them.

 

This is because you will be more aware of the facts surrounding a particular error that has appeared recently, rather than one that is two or three years old.

 

2. To Monitor Fraudulent Activity

 

This is an even more compelling reason to check your credit regularly. Identity theft is one of the fastest rising crimes in the 21st Century. And it often goes unnoticed by the victim for weeks or even months. In fact, the victim may be completely unaware of the theft until he or she goes to use a credit card, and the card gets declined. That’s as embarrassing as it is shocking.

 

Speed of detection counts even more in regard to fraudulent activity than it does with credit reporting errors. The faster that you recognize the problem, and take action, the more you’ll be able to limit the damage. The credit thief doesn’t usually stop at one credit line. Speed is the most effective response when a theft occurs. And you’ll only have that in your favor if you check your credit regularly.

 

3. To Be Aware of Major Changes in Your Credit Scores

 

Credit scores change all the time, both up and down. While it’s normal for them to move 10, 20 or even 30 points, you need to be concerned if it moves down more than this, or if it shows a long-term pattern of decline.

 

There are steps that you can take to keep your credit scores from falling, but you can only do that if you are aware that it’s happening. Regular monitoring of your credit scores is often the best way to stay on top of your credit overall. A significant drop in one of your three scores (from Experian, Equifax and Transunion) could indicate an error on your report, or even the existence of fraud.

 

Simply by monitoring your credit score on a regular basis, you can be aware of any of these problems as they happen.

 

4. To Be Ready to Apply for New Credit, a Job or Insurance

 

These days your credit is important, not just in applying for credit, but also when you are applying for a job and in many cases, when you’re buying an insurance policy.

 

Employers routinely check applicant’s credit reports. The information will be used to determine both the stability and integrity of the applicant. It will become even more important if the applicant is applying for a job that involves fiduciary responsibilities, management or handling money.

 

Insurance companies also regularly check applicants credit reports. It is considered within the industry that poor credit can be an indication of a high risk lifestyle. That can cause an insurance company either to increase the premium rate on the applicant, or even to decline the application entirely as an unacceptable risk.

 

Where You Can Check Your Credit Regularly

There are online sources, such as the top 10 credit Report website where you can monitor your credit on a regular basis. In today’s world, this is an activity that you cannot afford to ignore.

 

If you plan to apply for a job, an insurance policy, a car loan, or a mortgage, you will need to check your credit regularly for at least several months before applying. This will give you an opportunity to identify – and to correct – negative information that can cause your application to be declined.

 

Knowing what’s going on with your credit will provide you with exactly that opportunity.