Credit reports have the ability to change more often than we may think. As new information is submitted to credit bureaus continuously, it is important for you to know what is listed about yourself and credit. Therefore, let’s take a look at why you should check your credit report more than once a year.
Your credit report contains important features that identify you as you. These things include your name, social security number, address, employer, and more. Therefore, throughout the year, you will want to look at your credit report a couple of times to make sure these things are correct.
When looking at your credit report throughout the year, one of the most important things to view are your accounts. Your credit accounts will display a payment history, status, credit limit, and more depending upon the bureaus’ report.
You will want to make sure that all of your payments are being reported and that they are being reported accurately. It is known that some creditors may not report all of your payments to the credit bureaus. I experienced this dilemma personally.
The status of your account should not be unknown to you as it will be open, closed, charged off, in collections, or paid. If you have an account open, you will want to make sure that you are the one who opened it. A delinquent account that is charged off or was in collections but is paid can be removed seven years after the payment date.
Your credit limit should also be known as you do not want your score to suffer from a poor debt to credit ratio. You want to make sure that you are keeping your credit cards’ balances below 30% of their limit.
Your credit report will also list public records. These include bankruptcies, foreclosures, and tax liens.
A chapter 13 bankruptcy can be removed from your credit report after seven years. A chapter seven bankruptcy can be removed from your credit report after 10 years. A foreclosure and a paid tax lien can be removed from your credit report after seven years. However, an unpaid tax lien can remain on your credit report for up to 15 years.
As for all of your accounts, you will want to make sure they were opened by you. If somebody has enough information about you, they can open an account in your name and hurt your credit.
How to do so
A credit report can be obtained from each of the three credit bureaus. Their names are Equifax, Experian, and Transunion.
Yes, it will cost you some money to check your credit report more than once a year. However, you may be saving yourself a lot more money in the long run as you build a bright future.