3 Reasons Why You Need to Keep Track of your Credit Score
The common question that most consumers ask is: How often does one have to check their credit score?
Usually, once every six months is about enough to keep track of your score, and using the free credit report checks that each of us are allowed is the best way to monitor your score.
While some people might not consider this to be so important, here are a few reasons why you need to keep track of your credit score:
#1: Detect and Avoid Fraud
Whenever your personal or credit card information has been compromised, it’s a good idea to check your credit report immediately. The report will throw up information as to whether someone has used your data fraudulently. Hence, checking your credit report ensures that you’re in control of your finances, as you should be.
#2: Find Credit Report Errors
Statistics from studies have proved that almost four out of five credit reports have errors in them – mostly small ones but there are circumstances when some errors could hurt your score and cause your application for a loan to be rejected for no fault of yours. However, these errors aren’t necessarily due to fraud but also when people enter data incorrectly.
#3: Looking for a New Loan
If you’re looking for a new loan, checking your credit score is a wise choice to avoid any rude surprises later. Since most lenders usually check your credit score to ascertain whether you’re in a good financial standing, having a low score won’t help your cause.
In fact, in checking your credit score before filling in any documentation will tell you whether you should even apply for that loan or wait until you’ve improved your score adequately.