Why You Should Check Your Credit Report Regularly!
A statistic that will stop you in your tracks: an FTC study showed one in five credit reports contained “material” errors — errors that could ding your credit score, making borrowing more expensive or even impossible from one of the big three– that’s TransUnion, Experion, and Equifax.
The Importance of Checking Your Credit Report
This guide explains why regularly checking your credit report is crucial and how to fix any errors you find.
Catch Errors and Prevent Fraud
Inaccurate information on your report can lower your credit score, making borrowing money harder and more expensive. Regular checks help identify and dispute errors before they cause problems. You may get an annual free credit report from every credit bureau in South Africa, including Credit Boost. Click the link at the bottom of this page for your free credit report. All we need is an ID number and a cellphone number! The best part? It’s quick and completely free– perfect for those quick checks.
Monitor Your Credit Progress
If you’re working towards a higher credit score, then checking and watching your score rise can be a great motivator. Checking your report allows you to track your score’s progress over time and identify areas for improvement. It’s also integral when applying for loans, apartments, and insurance.
Protect Yourself from Identity Theft
Credit reports can reveal signs of identity theft, such as unfamiliar accounts or inquiries, because unfortunately for our country, identity theft is a hude issue, especially with our falling economy– people are desperate. Early detection allows you to take steps to minimize damage and alert the proper authorities.
How Often Should You Check Your Credit Report?
We recommend you check your credit report at least once a year, but if you’d like to be especially vigilant, then check it quarterly (once every three months). You can check more frequently if you’re applying for a loan, suspecting identity theft, or notice unusual activity, like a purchase you don’t usually make.
How to maintain and build good credit
Building good credit is all about consistency. A lot of people buy everything on their credit card– groceries, cleaning supplies, evenings out– and then pay it back at the end of the month, on time, to build credit. Something else worth considering is opening additional lines of credit to create diversity in your credit portfolio. Also important is keeping your credit utilisation ratio low (the amount of credit used compared to your credit limit). Lastly, dispute credit report errors to keep your credit clean.
The Effects of Inaccurate Credit Reports
Errors in your credit report can wreak havoc on your standing with credit bureaus and lenders. Possible consequences include difficulty obtaining loans or credit cards, higher interest rates on loans, trouble renting an apartment, higher utility deposits, heightened insurance premiums, and perhaps even problems acquiring employment. All in all, errors on your credit report can create difficulty (and possibly anxiety) in your life around money. That’s never fun.
By regularly checking your credit report, you can easily maintain a better reputation as a credit consumer, reduce difficulty getting loans, and all in all, make your life a whole lot easier. Get your free credit check with the link below– you never know what you might find.
