Why Should I Check My Credit Report Regularly?
So you can catch an identity thief ASAP
Identity theft and credit fraud have become the #1 White Collar crime across the U.S. for local law enforcement agencies. In fact, over 33 million Americans have been victims of credit fraud crimes in the last five years, and the numbers are rising.
In the past, having your wallet stolen was the major cause of someone using your credit cards. Today, identity thieves are far more sophisticated, so they pose a far greater threat to your credit report rating.
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So besides carefully checking your credit card statements each month, line by line, for charges that did not originate with you, you should:
- Review your free credit report often because discovering false charges may be just the tip of the identity theft iceberg.
- Be aware that once a thieve steals your Social Security number, your bank PIN, and/or your address, he/she can set up new accounts you don—t even know about, ruin your credit report rating with credit fraud, run up huge balances by buying thousands of dollars of items, and leave you shocked when the credit card bills arrive.
- Be proactive in checking your credit report on a periodic basis. If you do, you—ll be able to notice any new accounts that have been opened through identity theft, so you can start taking the steps needed to stop credit fraud.
- Not fail to check your free credit report for months or even a year, because you could lose your credit cards for non-payment of balances.
- Check your credit report frequently to help repair any potential problems with your credit history because of identity fraud.
So you can become a savvy credit report consumer
Some tips on becoming a good credit consumer:
- Obtain a free credit report from one of the three major agencies — Equifax: 1-800-525-6285; Experian: 1-888-397-3742; and Trans Union: 1-800-680-7289 —so you can stop an identity theft before it becomes a major crime.
- Pay particular attention to the inquiries section for names of creditors from whom you have not requested credit.
- Be aware that some companies may bill under names other than their store names.
- Make sure you pay attention to your credit report so you can maintain a good credit rating, and to more easily qualify for everything from a home mortgage to lower interest credit cards.
- Pay your bills on time and once a month — even if you can’t send in the full amount.
- Realize that once your credit report is hit with a case of credit fraud, your credit history will be impacted for months, possible years.
- Know what happens when a potential lender runs a credit check on your report.
Another tip: Research shows that many peoples— credit reports have inaccuracies — even if they’re human errors or computer glitches — such as the number of credit cards you have, when you applied for them, the amount paid, other people—s credit file, etc. These errors can affect your ability to get a loan, a job, insurance, and more. They can also cost you more by asking you to pay higher interest rates if you have credit fraud or if your credit report is wrong.
All of these reasons above are why it—s so important that you monitor and verify your credit report on a regular basis to help you protect the good credit that you—ve worked so hard to attain.
Finally, if your credit report is not where you want it to be, you can help discover some possible problems by checking it now — and keep checking it frequently. Once you smooth over any possible issues, you can work towards having an improved credit report.