A score is a number that is based on the credit files of an individual. If you apply for a loan, your credit score plays a very important role. It determines if you are eligible for a particular loan amount, the interest associated with it, etc.
A financial checkup helps you figure out how you can improve your finances. Checking your credit report is one way to decide what needs improvement. You know to get a physical checkup from the doctor once a year and a dental checkup twice a year, but just how often should you get a financial checkup?
You are entitled to free annual credit reports, you should check your credit report once a year. When you do access your credit report, what do you need to look for?
Make sure your personal information is correct because it can help the credit reporting agency match the right information to your credit report.
This section will list your credit accounts with information about the lender, how much you owe, whether the account is current or past due, whether it is open or closed, and other information regarding the account. Review this entire section carefully, ensuring that each account belongs to you and that all information is accurate,You may find that some creditors have closed accounts that you have not used in a long time. Pay your past dues as soon as possible to avoid any over due charges. If you believe there are errors, submit a dispute.
If you have any unpaid debt that has been placed with a collection agency, that will also show up on your credit report. Repaying those debts may improve your credit score. If you pay the collection amount, ask the collection agency to send a letter to you and the credit bureaus stating the debt has been paid and cleared.
There is a way to keep a check on your credit more frequently by visiting creditmonitor.com for your free credit reports. Have you checked them yet?