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If you’re in the market for a new car or house, you’re probably thinking a lot about your credit score. But what about the rest of the time? Is it always necessary to know and check your credit score? In short, the answer is yes.
From what your credit score is to how to increase it, the entire process can feel overwhelming. Nevertheless, it’s important to stay on top of your score if you don’t want it to act as an impediment when you decide it’s time for a life upgrade. Here are a few simple reasons to regularly check your credit score.
1. Monitor your score.
In order to instill good habits, you should keep an eye on your credit score as part of your regular finance routine. Just as you would check your bank balance, you should verify that your credit score looks more or less accurate given your personal activity.
Credit takes months — sometimes years — to build. As such, it usually takes a while to see major improvements to your overall score. Monitoring your score is therefore an especially important step if you are trying to build or bolster your credit score.
It can give you clues as to what actions will raise your score and which ones will tank it. Just remember that patience is the key. You cannot raise your credit score overnight, so remaining dedicated and vigilant is a necessary part of the process.
A little fluctuation is entirely normal, so don’t be alarmed if your score drops a few points from time to time. If there is a noticeable drop in your score, however, consider the reasons for this change. If no action on your part has constituted the change, it may be advisable to pull a credit report to ensure that you are not a victim of fraud or theft.
2. Make sure your credit report is accurate.
Although your credit report is separate from your score, your score may reveal oddities in your credit report. This is often the easiest way to detect foul play. If your score has changed substantially in a short amount of time — due to no action on your part — you might find that your security has been compromised.
Not all unfamiliar activity is suspicious. For example, many lenders will allow third parties to pull credit reports. If you notice an unfamiliar name, you should first check with any lenders to make sure they are not responsible for the inquiry.
On the other hand, identity theft can easily fly under the radar. Those who do not regularly check their credit scores may be shocked to find themselves victims of fraud. For many, the first indication that something is off comes only when they apply for a line of credit and find themselves denied.
As technology grows, so does the opportunity for violations of privacy and security. If you do find unusual activity on your credit report, you should report it as quickly as possible. A few simple steps will set you on the path to recovered credit and get your score back to normal in no time.
3. It’s easy — and free.
In today’s world, it can feel like everything takes unavailable time and money. Checking your credit score, however, is not one of those things. In fact, you can check your score within seconds from the comfort of your own home. Even more importantly, the process is entirely free. Go to check my credit score to review your score any time, anywhere, at no cost to you.
Similarly, there is no penalty for checking your credit score. While pulling a report will lower your score a marginal amount, simply viewing your score will not alter it at all. You can check your credit score however often you would like without experiencing any adverse effects to your score.
Failing to regularly check your credit score can result in any number of issues, from fraud to the subsequent inability to take out a new line of credit. Although many do not consider checking their credit score part of their financial upkeep routine, doing so can prevent disaster and help ensure that all life’s major events go as smoothly as possible.
Life is a collection of memories and experiences. There are ups and downs. I am so grateful for God’s grace and am on the journey to a renewed spirit, free of perfectionism. Perfection Hangover offers the sober truth – no filter.