You Need to Check Your Credit Score Regularly. Here’s Why:
One of the biggest influencers of your financial potential isn’t so much how much you earn, but what a certain little three-digit number says about your financial behavior. That’s right, we’re talking about your credit score and card debt. The higher it is, the better your overall financial situation is likely to be. It likely means you’ve managed your debt well and you’ll be rewarded with low interest rates on any future loans you apply for. But if your score is low, it means that you’ve likely got some work to do to get into a better position.
A simple basic credit score definition is that it’s a number that tells lenders how financially reliable of a consumer you are. And because of this, it’s important to know how to check credit score and reports, as well as checking your credit score regularly – just make sure you find the best free credit score service that works for you. Here’s a look at why you should be keeping tabs on your credit score and card debt often:
4 Reasons Why You Need to Check Your Credit Score Regularly
1. You Know Exactly Where You Stand
Thinking about applying for a mortgage loan, a personal loan, opening up a new credit card, or refinancing an auto loan? If so, you want to know what interest rates you can expect, which will help you dictate if it makes sense to move forward. Knowing how to check your credit score when the time comes will give you a ballpark number so that you can move forward accordingly. If your FICO score needs some work and you likely won’t be able to qualify for low interest rates, maybe you wait until you can enact some credit repair strategies. But if your score is in good shape, it’ll give you peace of mind moving forward.
2. It’s Easier to Dispute Errors
Nobody is perfect, and this includes the three major credit reporting bureaus. In fact, it’s estimated that about 20 percent of all consumers have an error on their credit report. It’s why it’s good to check your score often, as identifying a reporting error can help you dispute the item and have it removed from your credit history faster. The credit reporting bureaus will generally take about 30 days to investigate the matter and then remove inaccuracies after a dispute is filed.
3. You Can Monitor Improvements
If you set a goal of improving your credit score, you likely won’t have to wait too long to see any credit repair strategies pay off. In fact, if you stick to the plan, you could see significant improvement as quickly as a month. It can be fun – and rewarding – to track your credit score month to month to see your efforts paying off.
4. You Can Catch Odd Activity Faster
Finally, another reason why you want to check your credit score often is because there’s always the chance that you could be the victim of fraudulent activity. It goes without saying that the faster you catch and report any issues, the better your likely long-term outcome.
Learning how to check your credit score and report will help you in the long run. Regular credit score monitoring can save you from bad situations, and can also be a rewarding process.