Why Check Your Credit?
You know you need to check your credit regularly, but you may not know how. Many people have asked me to tell them how to check my credit. Others are still not sure why they need to check their credit at least once per year.
It is important to check your credit for several reasons. First, you need to know if someone else has accessed your accounts or stolen your identity. Identity theft is a huge and growing problem in the US and checking your credit regularly is your first line of defense. If you catch the theft early, it is much easier to correct the problem and prove that those fraudulent accounts are not yours.
Second, checking your credit gives you an idea of where you stand financially at any given time. Not only will you get a list of current debts and lines of credit, you can see how much you owe overall. You’ll also get an idea of whether your credit is good, average or bad. Having bad credit can cost you lots of money in increased interest rates and higher fees for many financial obligations. Bad credit can cost you a job if your future employer checks your credit before hiring, which is becoming a more common practice these days to help weed out those who are perceived to be at higher risk of committing fraud. Bad credit can even change your ability to find auto insurance.
Finally, checking your credit can help you see if you need to make changes. You may need to learn how to consolidate credit cards or make other changes.