Why Should You Regularly Monitor Your Credit Report

Whether you are applying for your first loan or line of credit or you have an extensive history of credit with different financial institutions, you should regularly monitor your credit report to verify the accuracy of your personal information that has been reported to the credit bureaus. This is also helpful when seeking business credit as many lenders check personal credit as well. Your report represents your creditworthiness when you’re applying for any type of loan. Some prospective employers may require a credit check if the job requirements involve handling large sums of money on a daily basis. Either way, your credit is among the most important considerations that companies evaluate to determine your approval.

Denied Credit or Employment
Being denied opportunities because of your credit can be very disappointing and discouraging for most people. If you have been denied employment or a loan based upon your credit score or history, many companies will not disclose the specific details that led them to their decisions. They may recommend that you review your credit report, settle unresolved financial issues and reapply for credit at a later date.

Before you sign the release allowing a company to examine your report, you should be fully knowledgeable of what it contains. You can avoid the hassle of credit denial by keeping track of the information on your credit report. Some people are denied credit due to prior accounts that they have forgotten about or financial inaccuracies on the report. If you notice past unresolved debts on your account, you can easily settle them and report updated information to the bureaus. This will help to improve your credit score and your ability to acquire future credit.

High Interest Rates for Loans
A low credit score may not necessarily prevent you from obtaining loans, but you may be subjected to higher than average interest rates. If your only option to obtain a loan is to agree to a high interest rate, it could cost you a lot of unnecessary amounts of money every month. Monitoring your credit report will give you the opportunity to work towards improving your score before you apply for your next loan, so that you will have a better chance at receiving low interest rates.

Understanding Your Credit Report
Your credit report will list all confirmed personal information that identifies who you are. Your date of birth, current name and any previous names will be included on the first page. This page will also include your current address, prior addresses and employment history that have been reported to the three credit bureaus. Before you proceed to the specific details regarding your financial data, you will see a summary of your active and inactive accounts in addition to other information that is a matter of public record, such as bankruptcies and foreclosures. Due to the statute of limitations on debt, accounts that have been closed for more than required time limit may not be shown on your report.

For each account, you will be able to review your payment history and the current status of the account. If you notice any inaccuracies, you have the option to file a dispute against the information reported. After an investigation, the credit bureau will make any adjustments to your report that reflect the current status of the account. There is also a section that lists the names of businesses that have submitted inquiries to review your credit history.

Protecting Your Personal Information
Identity theft is a serious issue in the United States. It involves three major occurrences, including the unauthorized use of an account or an individual’s personal information and the misuse of personal information for fraudulent purposes. According to the Bureau of Justice Statistics, 17.6 million people in the United States were victims of some form of identity theft in 2014.

Identity theft can happen to anyone. However, monitoring your credit report is an excellent way to make sure that no one is illegally using your name, social security number or your financial accounts. If you notice accounts on your credit report that you did not establish or inquiries from companies that you did not give authorization to, you should alert the credit bureaus and notify companies that set up the accounts. In certain instances, you may also need to report the matter to your local authorities.

Easiest Way to Monitor Your Credit Report
Not too long ago, people were required to call each credit bureau and place orders for their reports to be sent via mail. All disputes regarding inaccuracies were resolved by mail and over the phone. Today, credit agencies, such as CreditSesame, provide secure and convenient methods for consumers to monitor their reports from all three of the major bureaus. You will simply need to create an online account with a username and password and complete the process to request your free credit report. You can view your reports online and print them for your records.