How Often to Check Your Credit Report

Credit Report Checkup

It is good to do a parallel between checking your health and doing your current financial checkup. Some individuals may wonder why. The answer is simple. When it comes to your physical health condition, it is good to see how your health is doing so far. In order to do that you visit the doctor’s office and follow his instructions. Same applies to your financial checkup as it may help you to find out how your finances are doing. After that you will be able to figure out what needs to be improved.

Regularly, physical health checkups are done once or maybe twice a year. But when it comes to your financial checkup, can they be performed as often? Well, you should do your financial checkups at least once a year for sure. As you may know, you are entitled to receive your free annual credit report. To follow the once-a-year financial report checkup, you have to request your report yearly unless you are not opening numerous credit accounts each year. Once again, there is always an exception to the existing rules and it doesn’t have to fit your particular life circumstances.

Personal credit reports are also must be requested if a major purchase is made like buying a house, an automobile or a boat unless these purchases are credit-based. If you get denied in receiving a credit card or a loan which is initially based on your credit, then you are entitled to receive a free copy of your own credit report.

  1. Credit-based purchase (home, car, boat, etc.) requires a credit report. This procedure is made in order to prevent you from getting unpleasant surprises in case your bank loan application is denied. He is an example. If you have failed to pay $16 at your local library, the $16 fine will appear on your credit record and may keep you from making major purchases as strange as it may sound. Another great tip is to do a credit report checkup six month prior making your greater purchase through loan application. This way you will be able to pay out any kind of “hanging” fines and to clear up any kind of discrepancies. Keep in mind that the same thing does apply for private student loans applications as well as the other types of installment loans.
  2. Getting a denial from financial institutions based on your credit report entitles you to request and receive your own copy of credit report in the first place. By the existing laws, the credit-giving institution must send you a credit report copy letter within 10 business days. This way you will get a chance to know the exact reason that stands behind the received denial. As soon as you get it, view it carefully for accuracy or reported information. Remember, a found mistake in your credit report can be disputed with your credit bureaus. Then a request for updated copy of your existing credit report must be sent to you and then forwarded to your lender as well. There is always a chance of resubmitting your loan application as soon as your credit report has been properly corrected.

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