The Importance of Checking your Credit Report Regularly

by Achieva Financial
Jul July 18

Checking your credit report regularly is a smart move, but one many people never do. By checking your credit report regularly, you will have a clear picture of what your credit score looks like, and be able to take action on any negative changes. Here are some other benefits:

You can check for inaccuracies

Sometimes credit reports will contain errors, such as a record of inaccurate late payments or even accounts that don’t belong to you. These have the potential to have a devastating impact on your credit score and ability to obtain credit. By going over your report and flagging inaccuracies, you are able to dispute them and get them wiped from your credit report.

By doing a check for inaccuracies, you can also catch fraudulent accounts opened in your name. With identity theft, the sooner you catch it and are able to take action, the easier it is to deal with. You can find a list of things to do to help protect you from identity theft here

It can help keep your credit in good shape

By checking your credit report regularly, you will gain a sense of what activities help or hurt your credit. With this knowledge, you can take steps to build up a more positive credit history, or maintain a positive credit rating.

It helps you stay prepared

If you’re thinking of applying for credit in the near future, knowing what your credit report looks like can help you go into the application process with an idea of whether your application is likely to be approved, and whether you will qualify for a lower interest rate.

 

You can get a free copy of your credit report by mail once a year from both Equifax Canada and TransUnion Canada. It’s important to note that your credit report will not include your credit score; to get access to your credit score, you will be charged a fee. Consider checking your credit report twice a year; once using each of the two credit bureaus.