Why It’s Important to Check All Three Credit Reports and Scores

Financially-conscious consumers understand that it’s important to check all three credit reports and scores. A credit score is a reflection of your credit worthiness, and it is what lenders will use to determine whether or not to lend to you. Not only that, but credit reports and scores are an effective way to ensure that your information has not been compromised.

All Three Credit Reports and Scores Mean Multiple Scores

Most consumers are aware that they have three credit reports which are generated by the three major credit bureaus: TransUnion, Equifax, and Experian. However, many do not realize that each credit bureau also creates its own credit score for an individual based on the information it has on file for that consumer. These numbers will only vary by a few points or so for the most part, but there are times when the numbers vary significantly. This is an indicator that something is amiss, which is why it is important to check your credit score from all three credit bureaus in addition to your credit reports.

All Three Credit Reports and Scores Give An Accurate View of Financial Records

Checking your credit reports regularly allows you to ensure your personal information is accurate, the appropriate history has been properly reported, and that your personal information has not been compromised. In addition to your credit reports, it is equally important to check your credit scores. The scores will vary slightly between the different bureaus; however, if there is a large variance, it could indicate something that needs attention. It is important to note that a variance could be the result of a creditor not reporting to a particular credit bureau. However, since credit scores are used to determine your eligibility for lending, it is important for your credit report and score to accurately reflect your usage and history. The best way to do that is to ensure that all of your credit records are accurate, and all information has been appropriately reported.

All Three Credit Reports and Scores Help Prevent Identity Theft

Identity theft is on the rise in the United States, and it can ruin a person financially if they are not diligent with their credit. This is one of the best reasons for you to keep an eye on your credit files. If mysterious creditors suddenly appear on your credit report, or your score suddenly drops for no reason, you may be experiencing identity theft. From there you can place fraud alerts, or in severe cases, a freeze, on your credit reports to help prevent further damage. If the fraudulent accounts have already hit your credit report, you can immediately contact the creditor and inform them of the theft so that accounts can be closed and further attempts to use your credit will stop. By proactively checking your credit reports and scores, you are able to prevent identity thieves from severely damaging your credit profile, thus keeping your good standing intact.

For more information on checking your credit reports and scores from the three major credit bureaus, be sure to check out http://www.identityguard.com.