Checking Your Credit Report is a Good Idea

Have you checked your credit report lately? If you answered no, why not? Under federal law, we are all entitled to receive a free credit report annually from each of the three credit bureaus. During the pandemic, there is even an option to receive free weekly access to our credit reports online! Now, what's your excuse?

What is a credit report?

A credit report is an organized report of your credit history and activity. Credit info is reported by the three major credit bureaus - Equifax, Experian, and TransUnion. 

Why are Credit Reports Important?

Credit Reports are important for many reasons and one reason we often hear about is how it impacts your credit score. The information reported can impact crucial areas of your financial life. You want to make sure the information reported is accurate, complete, and up to date. This is especially important before a major financial event such as applying for a loan or credit card as the information within your reports may affect the interest rates you're offered and the terms of a loan. 

What's on the Credit Report?

Your credit report will contain information about your credit activity such as a business that you have loans or credit with, and the amount of your loans and credit limits on your credit cards. Credit reports also contain your payment history on loans and if you're paying them on time and the amount paid, you'll also find information about late payments and bad debts. On your reports, you'll see who has run your credit/accessed your report within a certain time frame, your name and address history as well as your former/current employers, bankruptcies, and public record information.  You can review this information and report any inaccuracies that appear. Having incorrect information on your credit report(s) can have a potentially negative effect on your credit score and how creditors see you when considering you for loans and credit. 

How Do I Check My Credit Report?

Many credit card companies provide customers with ways to check their credit reports for free. This is one option. However, one of the best ways to access your credit report from all three credit bureaus is by visiting Annual Credit Report.com (https://www.annualcreditreport.com). I caution you to make sure you're visiting the correct website as many websites will claim to offer free credit reports but there may be a catch. AnnualCreditReport.com is the official site authorized by federal law and provides free access to your reports (credit scores are not free). 

As I mentioned, it's a good idea to check your report annually to ensure accuracy and so that you're able to catch any inaccuracies as soon as possible. It may help to set a reminder to check your report every calendar year so that you do not forget. 

✨Managing Money Like a Boss is about being proactive rather than reactive. Checking one's credit report regularly is a great way to be proactive when it comes to your credit and protecting your financial life!✨