The government has worked hard to ensure that all consumers have free access to their credit report on an annual basis. However, few people actually take advantage of this privilege. Even worse, less people pay attention to their credit report at all unless they are applying for credit. Keeping a close eye on your credit report is important to the overall health of your finances and your financial future.
The best way to ensure your credit score is in good condition is to keep a consistent watch on your credit report. Most people never notice that their score has dropped or suffered until they are denied credit or receive a collection notice in the mail. Monitoring your credit report ensures that you are on top of any changes to the activity being reported in your history. This can alert you to any signs of fraud or delinquency early on, giving you a chance to resolve the situation before it takes a toll on your score.
Credit monitoring is also extremely important after bankruptcy or credit negotiations. Many creditors won’t update your account history right away with the credit bureau and your newly resolved debts may continue to appear delinquent for several weeks. If you have recently settled or negotiated your debts it is important that you request to have your updated information reported right away. Make sure that your report is accurate and keep a close eye on any changes to ensure you are headed towards credit repair.