Reasons Why You Need To Check Your Credit Report

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

We all know that it's important to have good credit - after all, your credit score directly effects your ability to buy/lease a car, get a mortgage, take out a loan and so much more. But what many of us fail to remember is that it is just as important to check up on your credit report regularly, or at the very least, once a year. In fact, according to USA Today, even though we have the opportunity to check our credit report for free every 12 months, a study conducted in 2015 by the National Foundation of Credit Counseling suggests that approximately 2 in 3 adults haven't.

Now that you know that you should check your credit report, let's move onto the why; here are three reasons:

1. Errors: Errors are natural and are something we may experience in almost everything we do, but there isn't much room for them when it comes to your credit score. If your report has inaccurate information - whether it just be out right wrong or someone else's information - you may not be the right candidate for a loan or the like in a lender's eyes. And since correcting a credit report error can take quite a bit of time, you want to make sure it's taken care of well before you need to apply for something that requires your score.
2. Identity Theft: In the unfortunate event that someone has been using your information, you may not notice it until it's too late - unless you check your credit report, that is. By double checking the accounts and inquiries that appear on your credit report, you can more easily detect if someone has been using your identity for things such as applying for credit or making purchases. Although your credit card company may be able to alert you of unusual activity, checking your credit report for yourself can help you rest assured knowing that you are aware of everything that's happening under your name.
3. Savings: Your credit score determines how much interest you pay back on certain loans, and if yours isn't accurate, then you may be spending money you shouldn't be - to save on interest, double check that your credit score is where it needs to be. But, if it's not, knowing your credit at any given moment can help you determine what you need to do to get it there - for example, if you see that you're guilty of making late payments, now you know what you need to change to raise your credit score back up.

Considering that your credit score has such a large impact on many of the things we do, we hope you take this to heart and make a mental note to check your score at least once each year - you'll be glad when you do!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.