😬 How often do you check this?

Without guessing…Do you know the last time you checked your credit report?

For many of my clients, I hear “crickets” when I ask that question!

I encourage my clients to check their reports early and often!

Whether we like it or not, credit is a part of personal finances for most Americans. If you have a mortgage, car loan, credit card or personal loan, the amount of money it costs you to borrow that money is largely determined by your credit score.  So if it has been a while, I want to encourage you to check your credit report soon.

Why check it??

Well, I nudge my clients to check their credit frequently for two main reasons: Security and Lower Interest Rates.

With the surge of e-commerce, there has been a dramatic increase in credit fraud. When you are monitoring your credit, you will be much more likely to catch any fraudulent activity. Whether someone is trying to open a new credit card or even trying to steal your social security number.

Next, your credit score has a direct impact on your interest rates for loans. When you have a higher credit score, you have access to lower interest rates for cars, homes and personal loans.

Most of the clients I work with have at least one loan, and a better credit score allows them to pay less in interest. A better interest rate truly puts more money in your pocket instead of interest fees.

Finally, I should also  add that there are a number of jobs, especially those that depend on a security clearance, that will review your credit history prior to employment. In certain situations, your ability to get a job depends on your credit score.

Here are my recommendations for staying on top of your credit: 

1. Annual Credit Report.

Did you know that you can check your credit score for free? Simply go to Annual Credit Report. This website allows you to access your credit report for free each year from TransUnion, Experian and Equifax.

2. Check for Errors and Dispute.

When you access your credit report, be sure to check for any errors. If you see there are mistakes, you can dispute them so that it is resolved before you need a new loan.

3. Credit Freezing.

To prevent fraudulent activity, consider “freezing” your credit. A credit freeze prevents lenders from accessing your credit history, which means they will not be able to open an account in your name or with your social security number. If you need to “unfreeze” your credit, you can simply do this in minutes. It’s a very easy process that provides a lot of protection!

For your financial health, I encourage you to check your credit reports frequently. Doing so helps you to detect any fraudulent activity sooner and it helps you to save money on interest rates, which is now more important than ever.

Just a simple “check in” could save you future headaches and money, so it is certainly worth the time and effort.