Lenders look closely at credit scores to assess creditworthiness.
A high score greatly increases your chances of getting approved for credit. But what happens if an identity thief gains access to your personal information and wreaks havoc on your score? Millions of consumers in the US are faced with this reality every year and it could just as easily happen to you.
Which is why you need to take efforts to monitor credit score. Here are several reasons why.
1. It Costs Nothing
You can request a copy of your free credit report from the major credit bureaus once a year. It takes little effort to do so but can reveal a lot about your financial health. This is particularly beneficial especially if you plan on applying for a mortgage or other loan.
2. Can Reveal Identity Theft
Identity theft is a rampant problem that affects millions of consumers every year. Checking your credit report can reveal indications that you are a victim of identity theft. For example, if you see any suspicious activity or new accounts you may have had your identity stolen.
Taking steps immediately can greatly reduce any damage to your credit. Consider investing in a credit score monitoring service to automatically keep tabs on your credit.
3. Identifies Potential Errors
Any errors on your report could negatively affect your score and affect your ability to secure credit. Which is yet another reason for monitoring credit score. If your score takes a huge dip and you have always been on time with your payments, you know right away that something is wrong.
Knowing this means you can take immediate steps to submit disputes and remove any errors on your credit report. Clearing any errors can even help improve your credit score in the long run so it is well worth the effort.
Your credit score is an important part of your finances. Take steps to periodically review it by requesting a free credit report from the major credit bureaus. This will allow you to identify any signs of identity theft and even fix potential errors.