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When it comes to making sure you are up to date on your financial health, checking your credit report once a year is a must. Knowing what’s on your report can give you an indication of where you stand financially and help alert you to any false information that could be there.
Here are some reasons why checking your credit report should be done annually.
Gauge Your Financial Health
Your credit report can serve as a gauge of your overall financial health. It can provide you with insight into the types of loans you have, how much debt you owe, and if any of your payments were late.
This information can help inform you of any necessary changes you should make to improve your financial health.
Check for False Information
Having incorrect information on your credit report can have profound implications for not only getting approved for loans but also for employment opportunities and even renting an apartment or house.
That’s why it’s important to review what’s in your credit report at least once a year so that if there is any false information, such as a loan or account that isn’t yours, it can be flagged quickly before it does more damage. Many identity thieves try to set up new accounts in your name which can hurt your credit. Checking the accuracy of the information will help protect you from this occurring.
It’s Free
The best part about reviewing your credit report each year is that it’s free! In the U.S., individuals are entitled by law to receive one free copy of their credit reports annually from each of the three major consumer reporting companies – Equifax, Experian, and TransUnion – upon request. If it doesn’t cost you any money to check and can help you stay on top of your financial situation, why wouldn’t you check your score yearly?
Staying abreast of what’s happening with your finances is key to maintaining good financial health — and reviewing your credit report is essential for doing just that! By periodically checking our credit reports we can stay informed about our current financial status and be aware if any false information has been added without our knowledge so that we don’t get stuck with someone else’s debt or a bad payment history due to identity theft. So don’t forget – check out those credit reports at least once a year!
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