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Five good reasons to regularly check your credit report

Five good reasons to regularly check your credit report

As far as we can see, there are five compelling reasons to monitor your credit report whether you’re planning to apply for a car loan or not. While it’s the agency’s responsibility to maintain the report, it’s our responsibility to make sure our credit report accurately reflects what’s going on in our lives.

Those five reasons to regularly check your credit report are:

1. You need to know your score

The first reason should be obvious. You need to know your credit score in order to improve it or use it. If you’re planning to take out a car loan or access other borrowing, you need to know your credit score in order to know the likelihood of acceptance and how much interest you might need to pay.

2. You can improve your credit score ahead of time

If your credit score to do with improvement, it is better to do it ahead of time instead of scrambling to do it when you need a loan. A gradual improvement of a credit score is easier to achieve and can be done completely on your terms.

A credit history, is exactly that, a history. Identifying issues ahead of time allows you to build a track record of paying on time and of successfully servicing credit. Two things that increase your score.

3. You can catch errors before they catch you

Mistakes happen and as good as the credit reference agencies are, errors can occur. Catching them early and doing something about them before you apply for finance makes the entire process much less stressful.

Having errors fixed can take time so it makes sense to correct the error as soon as you see it.

4. It helps you predict interest rates

If you’re shopping around for a loan or are getting pre-approved, knowing your credit score in advance gives you a much better idea of the rates you can expect. This in turn will influence how much you can borrow or how much you need to be willing to pay each month.

Both can come in useful in deciding when and even if, to apply for a car loan.

5. Identity theft happens

Even the most cautious person can have their identity stolen through no fault of their own. Keeping an eye on your credit report can help you spot issues quickly and hopefully before they get out of hand.

You can then apply for stops on your report to prevent any further credit being taken out in your name. This can save a huge headache when trying to clear everything up!

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