You could lose a lot of money if you are unfamiliar with your credit report. Your credit report determines your ability to qualify for credit cards, loans, and even employment in some cases. Having negative information on your credit report can hurt your credit score and prevent you from obtaining the financial products you need.
In some instances, it’s advisable to check your credit report as soon as possible, but you should already check your credit report annually.
Here are seven reasons why you should pull your credit report right now.
1. You’re Trying to Improve Your Credit
Checking your credit report should be one of your first steps if you want to improve your credit. It is possible to identify past financial mistakes to avoid in the future and dispute any negative information that is inaccurate. You can enhance your credit score quickly by removing false, negative items from your credit report.
2. You’re a Victim of Identity Theft
It’s possible that you’ve been a victim of identity theft if you’ve been receiving calls from debt collectors for debts you don’t owe or if your applications for credit were turned down when you had good credit. Identity thieves can use your personal information to open fraudulent accounts, which appear on your credit report and lower your credit score.
If you believe you may be a victim of identity theft, you should pull your credit report immediately. In the event that it contains fraudulent or inaccurate information, you will have to remove those items. You may also need to freeze your credit report until everything is sorted out.
3. Your Data is Compromised
Large databases of customer information are kept by companies, financial institutions, and other organizations. You may be at risk if a company you have done business with is hacked, or if your purse or wallet is stolen. Whenever you suspect that your personal information (such as birth date, Social Security number, and other identifying information) has been stolen, you should pull your credit report to check for any signs of identity theft.
4. You Plan to Apply for Credit
In the near future, do you plan to apply for a credit card, loan, or other financial product? Creditors will pull your credit report when you submit an application to evaluate your risk as a borrower. Before that happens, you should ensure your credit report represents you well. You should check your credit report to see if there is any incorrect information that makes you look bad.
5. You Recently Moved
It can be stressful to pack up your belongings and move. During a move, you may have forgotten to cancel a utility or have your bills forwarded to your new address. If you miss a payment, a late payment will appear on your credit report within 30 days. Be sure a bill didn’t slip through the cracks by checking your credit report. By paying it now, you can avoid further damage to your credit score.
6. You’re Separating or Getting Divorced
In the event of a separation or divorce, your credit report can help you identify joint accounts to close. After a breakup, an untrustworthy ex could use your personal information to open accounts in your name. Check your credit report to make sure this did not happen.
7. You Haven’t Checked In a Year
AnnualCreditReport.com allows you to check your credit report for free once a year, regardless of whether any of these situations apply to you. You should pull your credit report if it has been a year or more since you last did so. It’s free, and you might learn something!
Conclusion
There are three credit bureaus – Experian, TransUnion, and Equifax – that maintain credit reports. Make sure you pull your credit report from all three agencies the next time you check your credit.
Manually pulling your credit report might not be sufficient when you have been a victim of identity theft, or if you just want to be extra cautious. Monitor your credit report and be alerted whenever something changes with the help of credit and identity theft monitoring services. Those who want peace of mind will find it a viable solution.
Is your personal information on the dark web? Make sure your identity isn’t at risk!
