If you have a credit card in your wallet, you have a credit history. If you have a loan or have borrowed money for a large purchase, you have a credit history. When it comes to financial dealings, it’s good to know your history. You don’t need to know every little detail though, and that’s where a credit report comes in.
Your credit report plays an important role when it comes to financial milestones like purchasing a home or buying a car. It tells the story of your credit history by letting potential lenders know if you pay your bills on time and how much debt, if any, you are carrying. You will want to ensure that it demonstrates your responsibility in terms of finances so it’s a good idea to review it on a regular basis.
Thankfully, under federal law, you have the right to get one free report each year from the three national credit bureaus (Equifax, Experian, and TransUnion). To make things easy, you can request your reports online from a single website: AnnualCreditReport.com.
By providing some identifying information like your name, places you have lived, Social Security number and your birthday, you will be able to get a detailed report that outlines all of your credit related data.
Be proactive and check this report at least three times each year or before you apply for a loan, insurance, or credit. Not only is it a good way to identify signs of potential identity theft, it’s also important to make sure there are no mistakes or errors that would cause you to miss out on lower interest rates.
Since you can get one free report from each bureau annually, consider spacing them out over the span of a year and get one every four months. This way, you can catch any discrepancies early to reduce any negative impact it may have. You have worked hard to build a good credit report so make sure to check it often.
