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.