By 
Did you know the average credit score in the United States comes in at a 718 FICO score?
Your credit score can make or break your goal to get a mortgage loan, car loan, or other things. And even if you find a lender willing to lend you the funds you need, your credit score will factor into the interest rate and payback terms. So, a good credit score matters.
Continue reading for a look at four reasons you must get in the habit of checking your credit reports regularly — and how failing to do so can get you into deep financial trouble.
- See If There’s Inaccurate Data
Keeping an eye on your credit is essential. Doing so will ensure the personal and credit account data are correct and thorough. It’s not uncommon for credit reports to include the wrong accounts. If your credit report contains inaccurate information, file a dispute. Otherwise, you might end up with a lower credit score than would otherwise be the case. The problems won’t fix themselves without intervention, so file a dispute and ensure your credit reports are accurate.
- See If There’s Evidence of Fraud
Checking your credit reports can also help you check for instances of fraud. If you get credit reports from any of the three national credit bureaus and see fraudulent activity, file a dispute with the credit bureau in question. Fraudulent activity isn’t something to take lightly. The law is on your side as a consumer since you can dispute inaccurate information, and the filing is cost-free. File a dispute with each bureau whose credit report contains errors. It’s vital to be specific about the information you’re disputing, whether on accuracy or thoroughness grounds.
The sooner you identify problems, the sooner you can address them. That’s one reason you must be vigilant and comb over your credit reports at least once annually.
- You’ll See the Information Lenders See
Knowing what lenders see when they’re determining your creditworthiness is essential. If a creditor or lender pulls up your credit report after you submit a loan application, they will have the information needed to decide whether to lend you money. And if they do decide you’re creditworthy, they’ll decide the terms. The better your credit, the better the terms.
If you see areas for improvement on your credit reports, you can take steps to improve your creditworthiness. That’s one benefit of seeing what lenders or creditors see.
Remember that a lender or creditor will make decisions based on whatever information is in your credit reports. So, you’ll want to ensure the information is accurate and comprehensive to achieve a good credit score that puts you in the low-risk category for lenders and creditors.
- Ensure Accounts Are Accurately Reported
Yet another reason to check your credit reports regularly is to ensure that creditors and lenders report bill or loan payments accurately and timely. Your payment history is vital, so you need to know that your payment history is accurate and up to date. You also must ensure that any old information negatively impacting your credit reports is removed as soon as possible.
Checking your credit reports is important for these four reasons. While many people don’t check their credit reports, taking this course of action is done at your own peril. As a responsible consumer, you need to monitor your credit reports.
But what can you do if you try to get inaccurate information removed but aren’t getting anywhere? If your efforts aren’t yielding the proper results, one idea is to hire a lawyer at an experienced and reputable consumer protection law firm.
The right legal professional can advise on dealing with lenders, creditors, and credit bureaus so you can get things back on track.
