Reviewing Your Credit Report – What to Look For On Your File
May 29th, 2009, Written By: Kerri Randall
It’s a smart idea to keep track of your credit history. It determines whether or not you will be approved for loans, your credit limit, and your interest rates. You probably know that you can get a free copy of your credit report from each of the three credit bureaus, but how often should you do this? Should you get all three reports at once or space them out over the year?
It’s really up to you, as the general recommendation is to check your report at least once every three months. The advantage to reviewing all three at once is being able to see the differences in what each bureau is reporting and how it affects your overall history. You’ll be more likely to catch all of the errors that might be hurting you, whereas if you spaced the reports out, you might not get to the only one listing a large error or evidence of fraud in time to stop all the damage it’s causing.
You’ll definitely want to review your credit report at least a few months before making any large purchases (such as a car or house) or applying for hefty loans. This will give you time to start turning your credit around if you do find errors or a negative history. You want to act as soon as possible because you don’t want any surprises at the last minute that will cause you to be denied, especially when they may have been easily preventable. To make it worse, the “hard inquiry” by the creditor coupled with the denial will hurt your credit even more, giving you a rougher start on improving it.
If you are denied and your credit history was a definite factor, you are entitled to a free copy of your report. Don’t use this as a way to get another free report, though! Even if you’ve already received your free copies by this point and have to pay for another copy, your request is known as a “soft inquiry” and does not hurt your credit.
If you suspect your identity has been compromised or you are simply planning to get out of debt, reviewing your credit report is your first step here as well. Take advantage of your free credit reports and don’t be afraid to review your credit as often as you deem necessary.
Categories: Free Credit Score Reports
