Top 3 Reasons Why Checking Your Credit Report Is Necessary

A credit report contains vital details concerning your credit history, which can influence the outcome of a loan application. Although most people understand the significance of a good credit score, they still don't adequately track their own. It's advisable to check it at least three times a year. Here are some other important reasons why you should check your credit report.

1. Evaluate your financial health

Your credit report provides an overview of your financial well-being. While it doesn't show you the amount of savings or the performance of your brokerage account, it summarizes how well you manage your debts.

Your credit report also outlines all open loans and credit card accounts, including their prevailing balances. It shows how much of the available credit you're utilizing at any given time. This detail allows you to determine whether your level of debt is acceptable.

2. Fraud protection

No one is immune to financial fraud. Even with precautions to guard personal information, bad actors could still conduct identity theft and create a new account in your name. Regular credit report checks could help you identify that breach sooner and limit its impact.

If a thief obtains a new credit card using your name, its details will appear on your credit record. You're likely to identify this unusual activity and act fast. If you don't review your credit report regularly, you'll learn of fraudulent activity when you start receiving delinquency warnings. At that point, it might be too late to reverse the damage to your credit score.

3. Assess your creditworthiness

If you’re preparing to apply for a mortgage or other type of loan, it’s advisable to obtain your credit report first. This step helps you decide whether you’ll proceed or clean up your credit history to improve the chances of success. For instance, your credit report may reveal accounts that are past due.

Sometimes, errors on the bank's part trigger low credit scores. One signee of a joint account can also harm the other financially through reckless spending. These difficulties may cause your lender to decline a loan request. You may have to postpone your borrowing plans while implementing solutions that ultimately attract competitive interest rates.

4. Building credit

If you have poor credit, you can strategically use a credit card to rebuild and even improve it. A card with annual fees is your best option because you might not qualify for cheaper alternatives. You can take various steps to ensure the expense doesn't affect your financial health. They include making timely payments and maintaining low credit utilization rates.

Clark County Credit Union is your best option for financial stability. Our services include comprehensive loan, credit card, and banking products. In addition to encouraging regular credit report checks, we also offer vital resources via our blog, newsletter, and press releases. Plus, with CCCU’s Bonus Checking account you get free credit monitoring with registration. Join Clark County's best financial institution today to enjoy value for money.