An ideal time to reassess your financial health and implement habits that will positively affect your credit score is the start of a new year.
Monitoring your credit report and identity is the best place to start your financial resolutions because it can have a ripple effect on other aspects of your life as the year progresses. It’s especially important if you are getting ready to move – and want to qualify for a lease or mortgage – or even if you want to open a cash-back credit card to make more money on your purchases.
You can improve your credit health by incorporating these two things into your personal finance routine.
1. Monitor Your Credit
If you want to achieve your credit goals, you need to monitor your credit. Track your credit scores, check your credit report, and stay on top of potential fraud. Several credit monitoring services offer credit score trackers and simulators that can help you stay on track.
Keep an eye out for any inaccuracies as well. Incorrect information on your credit report can hurt your score.
2. Protect Your Identity
An identity and credit monitoring service can alert you when there are suspicious activities on your credit report. You may suffer a negative effect on your credit score if someone opens a line of credit in your name.
In addition to alerts for suspicious activity, credit and identity monitoring can tell you if someone uses your Social Security number, changes your address, or commits a crime in your name. If you become a victim of identity theft, some monitoring services offer identity theft insurance and restoration assistance.
Is your personal information on the dark web? Make sure your identity isn’t at risk!