5 Times You Should Check Your Credit Report

Checking your credit report is one of those chores that is easy to forget. Like cleaning out a fridge of old leftovers, it’s just not something most people do every day.

But there’s a lot more to your credit score than some leftovers growing mold. As a helpful metric of your financial health, your credit score is important. You should check it in these five situations.

1. It’s Been a Year Since Your Last Check

Best practice is to check your credit report at least once a year. 

This year, you get a free weekly check from each of the major credit bureaus until December 2023, so you can read your report more often. 

Reviewing your report gives you a good idea of how your finances are chugging along. It’s also a chance to spot any suspicious activity in your report, like a delinquent line of credit or payday loan. 

If you catch anything unusual, reach out to the credit bureau that generated the report and the company that holds the flagged account. 

2. You Need to Borrow Money Now

Legitimate lenders will check your credit when you apply for a loan online or in person. It’s part of their underwriting process and may impact your eligibility for a personal loan. 

Knowing what your score is before you apply for a personal loan is crucial, even if you need money fast in an emergency. This check helps you understand what kind of financial products you might be eligible for in advance. 

You have to go through a lot of paperwork before you get rejected, so this check can help you avoid wasting time applying for something you can’t get. Finding out you have a low score may limit your options. But once you know your score, you can search for alternative short term personal loans for bad credit. 

3. You Plan to Buy a Home

Checking your report is a good first step before getting your foot on the property ladder, as you’ll know how easily you may be approved for a mortgage. 

Like short term personal loan lenders, mortgage brokers check your report before they draft a mortgage. They want to see that you have a good chance of paying your mortgage on time. 

And, like short term personal loans, there are options if you don’t have perfect credit. However, the general rule is you need prime credit (620 and higher) to be approved for a conventional mortgage. 

4. You Want to Raise Your Score

Did you make a dent in your credit during the holidays? Or maybe you’re still recovering from losing your job at the start of the pandemic. 

There are plenty of reasons why your score might take a plunge. What’s more important is how you repair this score in the future. 

Checking your report can help you understand what you need to do to improve your score and track your progress. 

5. You’ve Been a Victim of Fraud

If a scammer used your credit card for a shopping spree, you need to be extra vigilant about your credit. Don’t just cancel the card and go about your day. You’ll want to check in with your report to make sure the scammer hasn’t stolen more information or opened fraudulent accounts in your name. 

Bottom Line:

You don’t have to check your report every day, but it’s a good idea to review it in the five examples above. Request your free check today to get started!

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