4 Reasons To Check Your Credit Report Regularly

If you're like most people, you check your credit report once every few years (if even that frequently). Sometimes, you do so out of curiosity. Other times, you check because you need to qualify for a loan or a variety of other services. But, if you're not checking your report at least once a year, you could be exposing yourself to mistakes that may impact your life in the near future.

We like to think that the credit reporting agencies are infallible. Flawless. Absent of errors. Unfortunately, they make mistakes. Blunders happen and fall through the cracks. In the end, inaccuracies on your credit report can hurt your chances of qualifying for a mortgage, buying a car, or even securing the job you want. Below, you'll discover 4 important reasons why you should check your credit report regularly.

Reason #1: Catch Others' Mistakes

Most of the errors that find their way onto credit reports are a result of people making silly mistakes. It can be as innocent as hitting the wrong key on a keyboard while making updates. Sadly, because most consumers neglect to check their credit histories, these mistakes often remain unidentified until it's too late. Horror stories abound of people who are flabbergasted to learn their credit report reflects late payments or worse, even if their payment history is flawless. Mistakes happen. Check your report and catch them early so they can be resolved.

Reason #2: Track Credit Inquiries

Your credit report details every person or entity that inquires about your credit. Inquiries made by banks, credit card companies, car dealerships, department stores and even landlords will show on your report. At first, this may not seem like an issue. However, creditors often consider a high number of inquiries as a negative sign. They infer that it may mean you're desperate for credit and pose a poor credit risk. By checking your report regularly, you can keep track of inquiries made about your credit (including those that you haven't authorized).

Reason #3: Detect Identity Theft

You've heard of identify theft. You may even know someone who has experienced it. Ironically, most people don't consider themselves vulnerable. Every day, thousands of people are victimized (often, unwittingly) by criminals who steal their identities and open accounts in their names. They do this by gaining control of people's financial statements. Then, they order new credit cards and begin charging items. Because the victims usually don't realize these accounts are even open, they often learn of the identity theft as a result of creditors' calls. You can prevent being victimized by checking through your report to identify new accounts that have been opened without your authorization.

Reason #4: Credit Fraud

When was the last time you handed your credit card to someone? Many people don't realize how easy it is for someone else to note their credit card number, expiration date and 3-digit security number. This information is often enough to make unauthorized charges. Even though you're protected from these abuses and can have the charges removed from your statement, creditors may react to the surge of charges by limiting your use of your credit card or raising your rates. This problem can be especially prevalent with dormant credit accounts. A quick scan of your credit report will help you find any activity in your dormant accounts.

Regular Checkups For Financial Health

The majority of your financial life hinges on the health of your credit report. Home loans, car financing and even employment opportunities can be limited due to a poorly-maintained credit history. Sadly, most people fail to check their reports on a regular basis. They're surprised to find glaring mistakes that can leave a disastrous impact. Check your report at least once a year. It's the only way to identify errors and have them cleaned before it's too late.