5 Reasons you Should Check your Credit Report Annually

The thing that’s real important in today’s world is our credit. We all need our credit to be in the best state because we all need good credit sooner or later. We need good credit to take out a loan for a car, house, or just about anything else that is “loan” related. That’s why it’s so important to always check your credit annually to see what kind of state your credit is in and what you can do to change it.

Most of the time we go without checking our credit and when we try to take out a loan that’s when we find out.  Since you can easily get your credit report for free annually, I wanted to share with you five reasons you should check your credit report at least once a year.

Has your identity been stolen?

The main reason why you want to check your credit every once in a while is to see if your identity has been stolen. There are times when people steal your identity and you have no idea until you check your credit. If you keep up with your credit you will find out right away but if you don’t you will find out until you check it. There are times when your credit card information has been stolen and you sometimes don’t find out until it’s too late. If this does happen to you and you find out soon, you can make a fraud alert on your credit report.

Is there an error?

Another reason is so that you can make sure that the last credit report that you had wasn’t an error. Studies have shown that four out of five credit reports have a chance to have a 25% error, that’s something that can’t be good if you only check it in a long time. If you get your credit report and see that everything is fine and then you wait around for about 3 years and print out another and see the error, then you are going to have a problem. That’s why it’s important to always keep up with your credit score so errors won’t happen.

Can you get that loan in the first place?

If you print one your credit report out and don’t find any errors but then go and apply for a loan to buy a house and at the last minute they say that your credit score is bad, it might not be a good day. By printing out your credit score, you can see if you are eligible for a loan,  and if so, you will be able to get a fairly good idea what kind of loan you’re going to get.  Remember that most, if not all loans, are going to be judged by your score.  The better your score, the better your interest rate is going to be.

What about the co-signer?

When you co-sign a loan, it can sometimes hurt people by co-signing somebody that doesn’t pay their bill. When you co-sign somebody, if that person doesn’t pay their bills, then you are responsible for paying the debt that it’s owed and that can affect your credit score. That’s why it’s a good reason to check your credit if you have applied for a co-sign loan.

What is your score?

You want to know what your score is, and this is a good reason why you would want to check your credit score. That way, before you get into any kind of loan or anything else that can affect your credit score, you can look at the state of your credit and see if it’s a good idea to go with the loan that you are planning. It’s also a good idea if you are looking to improve your credit score.

Jessica Norman is from the website howmuchisit.org. Here, you can browse through more than 3,200 cost helping guides that range from finance to professional services.