My Free Annual Credit Report

You may tell yourself that there is no need to get “my free annual credit report”, but you still need to check it to ensure that your credit information is accurate. Most people do not really think that getting credit report is important. Contrary to what most people believe in, there are a lot of benefits of getting it. As a consumer, what is in store for you if you get your credit report?

There are three major credit reporting agencies that operate in the United States that provide a credit report for free. These agencies itemize all your financial transactions which include student loans, auto loans, mortgage and credit card applications. They also collect your payment history as well as bad debts, if any, to create a picture of your credit score.

You can ask yourself “why do I need my free annual credit report?”. If you think that you have not incurred any bad debts and made regular payments on your bills, then it might not have crossed your mind to check it. Unfortunately, this belief can be crippling and while you think that your credit report will be exactly what you expect it to be, chances are that it is not.

Determine Errors On Your Credit Report

Getting a free credit report allows you to determine that no items are incorrectly reported. It is also a great way to determine that all debts incurred as well as all accounts indicated in the credit report belong to you. For instance, if you found out that you are still an authorized user on your mother’s credit card that was set up 15 years ago and was never closed, then you need to do something about it to avoid hurting your credit report and score.

You also need to pay attention on the inaccuracies indicated in your report such as an incorrect credit limit or a closed credit card reported as active because they can bring a lot of damage to your credit score. The thing is if you ask yourself a question about “my free annual credit report” and you see all of these errors in your credit report, you need to do something about it.

Prevent Identity Theft

You might not know it, but you might already be a victim of identity theft. If you don’t do something about it, you will continually hurt not only your credit score, but also your credibility. Many people do not keep an eye on their credit report and they only learn of their situation once they start getting harassing phone calls from collection agencies. Checking your credit report can alert you if you are a victim of a potential fraud.

It is important to keep aware of your finances and that includes checking your credit report. So if you still ask yourself the question “Is it good to check my free annual credit report?”, the answer is definitely “yes”.