How often should you check your credit report? The simple answer is this: once a year. However, everyone is an individual with different circumstances, so one size does not fit all. For those with good credit, once a year may be enough. However, in this economy, many people are opening more accounts and dealing with other situations that would call for more frequent credit report checks. It is important to know when to check your credit report. You may check your credit card and bank statements thoroughly every month, but in these times, that may not be enough to detect identity theft. When a thief opens a brand new account in your name, it won't show up on your credit card bill, but you will see it on a credit report, since credit reports show new accounts that have been opened. Receiving a phone call about debt you didn't know you owed is not the best way to find out your identity has been stolen. You will have a much better chance of dealing with identity theft if you detect it early on, by checking your credit report before the problem gets out of hand. There are also other situations in which it is important to check your credit report. If you are planning to get out of your current credit card debt or to improve your credit in general, your credit report is the right place to begin your research. It contains details about all of your financial accounts and what creditors are saying about you. Staying on top of your finances is the best way to maintain good credit or to improve upon it. Another important reason to know what is on your credit report is when you are applying for a loan. If you are denied for that loan, it is vital to know why in order to keep it from happening again. A small credit card debt, even a twenty dollar one from four years ago, can keep you from being approved for a loan. If you are denied for a loan, you are entitled to a free credit report, which you should review to ensure that all information is accurate. Because credit reporting bureaus are made up of people, it is possible that a human error can occur in your credit report. If you find an error, you have the legal right to challenge that error. Credit agencies are required by law to look into your challenge to ensure accuracy on your report. It is not only important to know what your credit report says about you, it is your right. Whether you are trying to get a loan or just making sure your identity has not been stolen, it is important to know what information is on your credit report. You have the legal right to pull one credit report per year for free. Don't pass up this right. And remember, if you are looking into applying for a loan, trying to improve your credit score, or just looking out for identity fraud, pull your credit report frequently enough to make sure your credit information is accurate.
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