A recent study by the Federal Trade Commission reveals that approximately 25 percent of consumers have identified errors on their credit reports, which in turn negatively impacts their credit scores. Damaged credit scores result in higher interest rates, fees, and paying more in general. This eye-opening study reveals why it’s more important than ever for Americans to check their credit report on an annual basis. Not only will you keep your financial reputation in check, but you’ll also protect your pocketbook.
Protecting Your Credit Report is Important
There are two main reasons why people should check their credit report on an annual basis. The first is to ensure that everything is accurate. This can also help you detect fraud and ensure that your identity is still secure. The second reason people check their credit reports is to find out what their score is, especially if they’re about to apply for something or make a major transaction.
Regardless of why you check your credit report, you are able to verify the accuracy, detect fraud, and research what you can do to improve your credit score. All of these elements are crucial and can affect your day-to-day lifestyle.
For instance, if you’re struggling with mortgage debt like millions of other Americans, you might seek mortgage debt solution through a loan modification or mortgage modification. If your credit report is inaccurate, you could be faced with higher interest rates and lose money that you don’t deserve to be losing. Whether it’s your mortgage debt, a car loan, or any other type of credit, ensuring that your credit report is accurate is crucial to your financial health and security.
Remember, you are entitled to a free credit report each year by all of the three major credit bureaus. By taking advantage of this free offering, you’ll be able to monitor your credit report and ensure that your financial profile is exactly where you want it to be.