When Should You Check Your Credit Report?

When Should You Check Your Credit Report?


One of the biggest parts of maintaining a good credit report is to check your credit report regularly or at least once per year and in a certain situation. It may be a good idea as it helps you track the movement of your credit, same as doing a financial analysis.

One of the purposes of checking your credit report is for you to know your credit score. Your credit score is an important aspect whenever you apply for credit. Creditors or lenders use your credit score to know your creditworthiness and also to determine if you are qualified to apply for credit.

How Often Should You Check Your Credit Report?

It is not really necessary to check your credit report on a daily or weekly basis. However, it still important to check your credit report.

  • Check your credit reports every year. The federal law grants anyone a free copy of their credit report each so it is good to take advantage of that opportunity. It is advisable that you spread out your request of getting a credit report throughout the year. For example, request to read a credit report from each agency every four months. That strategy is more effective than getting your credit report from all three agencies at once.
  • Before a major credit purchase or refinance. If you are planning to buy a car or a house, you may want to review your credit report. Here’s why:
    • Gives the agency enough time to fill in the missing important information.
    • You can check if it is favorable and consistent.
    • You can plan if there any negative information.
  • Check your credit report if you are given free reports. In situations like, you are turned down for a credit application or you are seeking for employment, you are entitled to a free report. it is best if you take advantage of these situations to review your credit reports again.

Reasons to Check Your Credit Reports

Here are the reasons why you should check your credit report.

  • It’s free. Okay, anything that is free is absolutely amazing so why not take this opportunity to check your credit report.
  • It helps to maintain a good credit. Checking and reviewing your credit report every once per year will help you make sure that your credit report purpose is in good shape.
  • An essential part in managing your personal financial. Keeping track of every time your credit report change, increase or decrease is an important part of being financially successful.
  • An indicator of identity theft. If your name is misspelled or you find other names in your credit report, then it may be a sign of identity theft or credit report scams.

Misconceptions About Credit Reports

Below are the common misconceptions about credit reports.

  • Bounced checks affect your credit report. Whether or not you have been irresponsible with your bank account, that information will not appear on your credit report because the credit report includes only information related to credit activities.
  • Checking your credit report impacts your credit score. There are times where it affects your credit score but only those inquiries related to applying for new credit or “Hard credit report inquiries” can affect your credit score.
  • New accounts will lower your score. Yes, it does lower your score but only for temporary. Opening new account will have a positive effect on your score in the long run. Your account average will improve as the account ages.