As such, you should strive to maintain a credit score above 700, which is generally considered good, if you are a borrower.
What is your credit score currently? If you do not know, you can use Credit Sesame—a free credit score checker with thousands of users like you.
A good credit report or score can be a gateway to unlimited financial opportunities. That is because creditors and lending institutions prefer to lend customers with good repayment track records.
Why It Is Important to Stay Up to Date with Your Credit Report
It comes as no surprise that many borrowers never keep track of their credit reports maybe because they entrust the credit bureaus with the responsibility, lack knowledge of how to do so or are outright lazy.
However, here are some important reasons why you should always be checking your credit report:
- It Can Help You Detect & Dispute Errors
If you thought that credit bureaus are 100 percent accurate when it comes to credit reporting, it is about time you rethink the thought.
According to the findings from a 10-year study that was conducted by the Federal Trade Commission, 20% of credit reports contained errors. Best part is; 25% of those reports had major errors that affected customer’s credit report.
Using Sesame Credit, a free credit report checker can help you detect errors and engage the bureau to correct them.
Maybe lenders decline your loan applications due to your credit score, which may be as a result of the bureau’s error. There is no way of knowing, unless you check.
2. Your Credit May be Affected by Others’ Mistakes
Apart from your bureau’s mistakes and errors, your credit score might hurt due to other parties’ faults.
For instance, if your medical insurance provider is not settling your hospital bills on time, that is going to affect your score. So is if you provided a guarantee for a loan that was defaulted or repaid late.
Maybe your credit score is bad simply because other parties are not playing their parts well enough.
But you will not be able to find that out unless you start taking a closer look at your credit reports.
Sesame Credit makes it incredibly easy to do that. Afterwards, you can raise a dispute with the bureau to have your CS relooked at.
3. It Can Help Stop Identity Theft & Credit Card Fraud In Time
In 2018, the Federal Trade Commission received 1.4 million credit card fraud reports totaling $1.48 billion in losses.
The majority of these reports entailed the use of credit card users’ payment information by criminals to pay for products and services.
In addition to that was the use of people’s Social Security number by fraudsters to obtain loans fraudulently.
Checking your credit report with Credit Sesame can be an easy way to detect if somebody else is making purchases with your payment information or using your Social Security number to apply for credit.
Thereafter, you can report to the authorities and, additionally, work with your bureau to improve the security of your financial and social security data to protect against fraud
4. It Can Help You Save Money
As you already know, loans have price tags, which experts call interest rates. It goes without saying that lenders will charge borrowers of the same type of loan different interest rates.
Why is that so? The answer is credit score. Borrowers with good credit scores will enjoy better interest rates than those with bad CSs.
Yet the unpleasantness of your CS may not be as a result of your fault, but that of your bureau or other parties.
By checking your credit rating often, you will be able to identify the bureau’s or other parties’ faults that are hurting your rating. Then you can have it improved so that you are able to enjoy better interest rates than otherwise, saving you lots of money.
As you can see, checking your credit report is something that you should be doing on a regular basis.
That way, you will be able to detect & dispute errors as well as know when your credit score is being affected by others’ mistakes so that you can take the appropriate step.
Apart from that, you will be able to stop identity theft & credit card fraud on time and save more in terms of interest rates.Credit Sesame is a popular service that many borrowers use to enjoy the benefits of staying up to date with their credit ratings.
This service is truly free and easy to use, coming with quick step-by-step instructions that show how to check credit score. Do not be left out, check your credit report often with Sesame Credit.