Your credit score is a very important part of your financial security, yet most people do not even bother to check their credit rating until they need to make a big purchase, such as a house or car. Imagine the horror of being turned down for finance because you are informed that your credit rating is low.
In order for you to have complete control over your credit rating and financial peace of mind, you must check your credit score on a regular basis.
Here are 10 reasons why you should check your credit rating
1. See Your Accounts
When you check your credit rating you will see all of the accounts on your name, these can be cell phone contracts, vehicle finance, home mortgages and credit cards. By checking your credit status you can see at a glance the state of your finances instead of having to pore over bills and statements of account.
2. Know your risk class
Knowing your risk class (good, average or bad) assists you in applying for the right credit for your financial status. If you are aware of your credit status and your risk class, it makes applying for a loan, credit card or mortgage which fits your credit rating profile. Thus avoiding disappointment.
3. See where you can improve
If you haven’t got a perfect credit history due to circumstances, becoming familiar with the details on your credit ratings report will make you aware of the problem areas that are making it difficult to manage your credit effectively.
4. See your creditors
The credit rating report lists all of your creditors including their contact details. This Is very convenient in case you need to make contact with them in case your circumstances change and they need to update their records.
5. Historical addresses
The credit report also lists all the addresses you have lived at over a period of years making it easy for you when filling out forms, such as opening a new account or applying for a job.
6. Your previous credit inquiries
Your report lists all the applications for credit you have made in the last year or so, this can be helpful by making sure you do not approach and apply to the same lender within to short a period.
7. Find mistakes
Checking your credit ratings report gives you the opportunity to spot any mistakes which have been incorrectly captured. If you feel there are some errors posted by the lender, you can make contact with them in order to correct the errors, or in the case of dispute, escalate the issue,
8. Who has been looking into your profile
By checking your credit rating report you can see if any lenders haven’t inadvertently posted a request for information as an actual application for credit. Information requests from lenders should not show up on your credit report. If these do show up on your credit report it can have an impact on your credit rating as lenders do not like to see any large amounts of applications within a short period of time. You can then contact the source and ask them to amend the details correctly.
9. Track your improvement
By checking your credit report every month, you can track your improvement. This will give you an idea if what you are doing is helping you increase your score or making your score to decline.
10. Protect you against identity fraud
One of the most important aspects of checking your credit rating on a regular basis is that it helps you protect yourself against any identity theft or fraud. With regular checks, you will be able to pick up on any suspicious credit applications or open accounts in your name of which you are unaware, and affords you the opportunity to contact the lender or relevant authorities with the details.
You are entitled to a free credit report from each of the credit bureaus annually. It is in your best interests to take advantage of this.