Is Checking Your Annual Credit Report Enough?

Most people have heard that it is important to check their annual credit report, and that it is possible to obtain a credit report for free once per year so that they can keep track of their credit history. The reality, however, is that checking your credit one time per year may not be enough for most people. Furthermore, simply obtaining a free annual credit report is also not going to be sufficient to give you a full picture of how lenders view your borrowing history or of whether your credit is good or bad. Instead, there is more you need to do in order to be on-top of your credit score and to make sure that you never face higher interest rates than you should because of problems with your credit information.

Your Credit Report is Updated Frequently

Checking your annual credit report is not enough to know what is going on with your credit because your report is updated much more often than once a year, and because a lot can happen over the course of the year. Creditors report new information to the three major credit reporting agencies once per month. This new information might be details about payments you have made, new accounts opened in your name or judgments against you. You need to know about this new information as soon as possible, because the information on your report could show that a mistake has been made (like incorrect information being included) or that identity theft has occurred (if someone opened an unauthorized account in your name). If you wait a year to find out about an error or identity theft, you could have a big mess on your hands to try to undo all that the thief has done, or you could end up missing out on credit opportunities.

Your Report Can Be Checked More Often

Waiting for an annual credit report is also not a good idea because lenders don’t just check your report once per year. Every time you apply for credit, your report will be checked. Likewise, if you get a job of try to rent an apartment, your landlord or employer may check your credit. You want to ensure that the info they are obtaining is accurate, which means you need to look at your report regularly so you’ll always know what lenders are seeing no matter what time of year they pull your credit.

Check Your Credit More Often Than An Annual Credit Report

Checking your credit once per month is generally a better choice for most people than just checking once a year. Fortunately, with Credit Report 123, you can obtain more than just an annual credit report- you can regularly get three credit reports AND your credit score, which lenders often rely on to give them an idea about your credit without having to check the entire report.

Annual Credit Report

If you haven’t gotten an annual credit report recently, then it may be time for you to get one of these reports. These reports are important for making big financial decisions. The good news is, if you do want to get a detailed credit report on yourself, there are many companies that have made the credit score monitoring process quite easy. When getting an annual credit report, first you will want to make sure that you are getting the right type of credit report. When you receive a credit report, the three major credit agencies; Equifax, Experian and TransUnion will all provide you with an individual credit score. You will need these three scores to get a complete view of what your credit score is.

Understand Your Annual Credit Report

It is also important to make sure you understand how this process of getting a 3-in-1 credit report works. If you are turning to the right company for help with credit monitoring services, you will find the process can be quite easy. These are the typical steps involved with getting a credit report from a credit reporting company:

1- Complete an information form. This will typically ask for some basic personal information so that the credit company can track down your financial information.
2- Verifying your information. So that the company isn’t just giving out information to anyone with your name and address, you will need to be able to verify your information and your identity as part of a security measure.
3- Accessing your report. In most situations you will be able to access your credit report right online in a matter of minutes.

Getting Your Annual Credit Report

Finally, when it comes to getting an annual credit report you should know the primary reasons people have for getting credit scores. Here are some of the top reasons that people will get a credit report:
• Renting an Apartment- You will find that most landlords want to have some type of proof that you are financially responsible and that you will follow through on your financial commitment.
• Buying a Home- Part of getting a mortgage for your home, often lies on your credit score.
• Determining Identity Theft- A great way to determine if you have been the victim of identity theft is to check your annual credit report.
• Purchasing a Vehicle-Many times, when you are purchasing a vehicle, you will find that the company will run a credit check on you before setting up any financing.