Reasons to Check Your Credit Report and Credit Score

July 24, 2024 By: Stephanie H. - CreditMonarch Online Writer0 comments

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Are your personal finances well monitored by you? Perhaps you have not given them much consideration. Regardless, it’s time to start paying more attention to your credit score and credit report. Your credit score can control a lot what loans you qualify for, the credit cards that are available to you, etc. To keep on top of it all, it’s important to check your credit score.

Before considering how often to check your credit score, it’s essential to know the distinction between a credit score and a credit report. It’s easy to mistake them for one another, which can lead you to believe they’re the same but they’re not. Your credit report is a detailed description of your credit history. Active and past accounts are displayed, as well as whether you have paid on time, and how much credit you have used compared to open balances.

Other information that could be included include the names of past employers if they’ve been mentioned on a credit application, as well as negative records like collections accounts and bankruptcies. Your credit score, which is a three-digit number, ranging from 300 to 850, is calculated based on all the information in your credit report. FICO and VantageScore are examples of popular credit scoring models. So why do you need to keep tabs on your credit score and credit report? Here are a few reasons.

• Regularly reviewing your credit report can help you detect inaccurate negative items that could be negatively impacting
• Regularly reviewing your credit report can help you spot suspicious activity, which could indicate that you have been the victim of identity theft or fraud. Identifying and taking action early can save you a lot of stress in the long run
• Having knowledge of your credit score and how it changes over time can assist you in determining if there are any problems with your credit report
• Checking your credit is recommended prior to applying for a loan, particularly one with higher qualification requirements like a mortgage. By fixing any possible issues before a lender evaluates you for approval, you can avoid any potential problems
• Checking your credit is also recommended prior to applying to rent an apartment, get auto insurance quotes or purchasing a cellphone as some of these applications can depend on your credit history/score

Here at CreditMonarch, you can review a copy of your most accurate credit report and credit score. To view your credit report and credit score, see below.

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