“How often should I be checking my credit reports?” We get that question all the time. In truth, there is no one correct answer to this question, though some recommendations are certainly going to be better than others. Let’s explore the different options so that you can determine the right course of action for you.
Never – Worst Option
Credit reports can impact everything from your ability to purchase or rent a place to live, to your ability to qualify for financing, to your ability to land a job. Ignoring your credit reports as if they are not important is both reckless and unwise. It’s like driving with your eyes closed.
One reason it is so important to check your credit reports at least periodically is because errors and mistakes happen. When credit reporting errors occur they can have a very real, sometimes very expensive impact on your life.
For example, if a collection agency were to add an incorrect collection account to your otherwise clean credit reports, the impact could be devastating. Your once high credit scores could come crashing down. It is up to you to check your credit reports for accuracy and to alert the appropriate parties (credit reporting agencies, creditors, collection agencies, etc.) when/if any credit reporting mistakes happen.
Once a Year – Not Much Better
Checking your credit reports once a year is a decent place to start. In fact, the federal government has mandated that the 3 major credit reporting agencies (CRAs) grant you free access to all 3 of your credit reports once every 12 months. You can easily take advantage of this right by visiting www.AnnualCreditReport.com. You can also sign up for credit monitoring and get alerts on any activity happening with your report from all three bureaus. We we suggest all of our clients to subscribe to this monthly monitoring service. You can do this by CLICKING HERE!
Whenever you check reports be sure to go through them line by line to verify the accuracy of the information. You have the right to dispute any mistakes or information with which you disagree. You can submit those disputes directly to the CRAs, to the creditors who are reporting the incorrect data, or to both.
Quarterly – Better
Checking your credit reports quarterly is a considerable step in the right direction. For many people, quarterly credit checks may be sufficient, especially if you are willing to throw in an additional personal credit check prior to any new applications for financing. Just remember, in order to truly keep tabs on the health and accuracy of your credit, you will need to check all 3 credit reports from Equifax, TransUnion, and Experian. Checking a report from a single CRA is not enough.CLICK HERE TO SIGN UP FOR MONTHLY MONITORING!
Once a Month – Best
When it comes to maintaining good credit there are some people who become obsessed. Though, as far as obsessions go, this one isn’t so bad. To the contrary, monthly credit checks are responsible, smart, and ultimately the best option.
If you think it’s overkill, please consider the following. Data breaches and identity theft are on the rise. More and more consumers have their personal financial information compromised on a weekly basis. All it takes is for the wrong person to get their hands on your data and to open fraudulent accounts in your name for your credit rating to go from stellar to abysmal in a shockingly short amount of time.
So, going forward it’s in your best financial interest to get into the habit of checking your credit reports as often as you check your credit card statements and bank statements. Why? Because the information on your credit reports is updated on a monthly basis which means your credit reports can look the same or materially different in just 30 days.
Better Day Consultanting, The fastest growing credit repair firm in the U.S. Call now: 833-522-0200 www.betterdayconsulting.com