A credit report contains information about where we live, how we pay our bills, and possibly whether we’ve been sued, arrested, filed for bankruptcy and more. Pretty interesting stuff, and get this, your employer (future or current) could see this information.
Here are a few reasons why reviewing our credit report is important:
1. First and foremost – Identity theft issues. If a thief steals our information they can open credit accounts in our names, rack up the account, and leave us with the problem. Just think about the last time you got a store credit card, how easy was that?
Theft can be quick and damaging. Disputing these can be very hard, by monitoring our report we can help ourselves identify those issues sooner.
2. Higher insurance costs, mortgage rates, and more.
The amount of delinquent or overdue payments shown on our report, the higher the rates a lender or insurance company may charge us. Don’t let simple mistakes cost you more in the long run.
3. Are you looking for a new job?
In today’s world, it is highly likely that our credit report will be pulled for a job opportunity. I wouldn’t be surprised if an employer passed on us because of a faulty credit report. Employers are looking for reliable and responsible employees.
So, how can we check our credit report?
The Fair Credit Reporting Act requires each of the nationwide credit reporting companies – Equifax, Experian, and TransUnion – to provide us with a free copy of our credit report at our request, once every 12 months.
The website to obtain a free credit report is www.annualcreditreport.com. You can elect all three at once or one at a time. I recommend scattering out the three reports over the year.
I have been checking mine since 2005. While I haven’t found any issues or errors (thank goodness), I still check and will continue.
It’s free and a way to look out for yourself, why wouldn’t you?