Most of us don’t give much thought to your credit score in our day-to-day lives. But when the time comes for a major purchase like a house or a car, the information in your credit report is crucial. People are often surprised at how much incorrect information can show up in their credit report when they finally take the time to look at it. It’s important to monitor your credit report so that it can look its best when it really matters!
There are some problems that commonly arise in credit reports, and knowing about them will help you to avoid them. A look at some statistics is a good way to get a picture of how credit reports are affecting people just like you.
Understanding the importance of our credit score
Your credit score doesn’t just affect loans. While a low credit score can stop you from getting a loan, it can also cause you to pay a higher rate of interest on money that you do borrow. It affects insurance premiums, and even your likelihood of being hired for a job. Unfortunately, credit agencies are not able to ensure that your report is error-free, so it’s critical that YOU keep up with this information yourself and be proactive about protecting your credit.
Start by ordering your free credit report annually (maybe each year on your birthday?) at a site such as https://www.freecreditreport.com. Be sure to get the reports from all 3 bureaus: Experian, Transunion, and Equifax, since one may have mistakes that others don’t.