Credit reports are more transparent these days and quick to review. You can even view your credit score on monthly statements of your credit card, so you should know roughly where you stand with your report. The three major credit bureaus – Equifax, TransUnion, and Experian, actually allow you to see a copy of your credit report for free each year, so if you have not looked at yours in a while that would be a good place to start. Although you should check your credit report at least once a year, here are four other times when it may be necessary to double check so there are no surprises.
Shopping Around for a Loan
It would not only be embarrassing to receive a denial for an auto, personal, or mortgage, but could mean that your information has been compromised and accounts have been opened in your name. In order to qualify for the best interest rates, saving what could be hundreds of dollars a month compared to higher rates with those with poor credit, you will want to make sure your score is accurate. After all, a car and home are two of the most important purchases that you can make.
Looking at Insurance Rates
Believe it or not, the home and auto insurance rates you quality for are partly based on your credit score, making sure that you are a dependable, and insurable borrower. The lower the score, the higher the insurance premium you will pay or they even may decide to not do business with you, making it tougher to be insured.
When You Are Looking to Invest
Often times investing money doesn’t necessarily correlate to your credit score. However, you many brokerages will allow you the opportunity to buy on margin or borrow through their investment firm. These types of “loans” can sometimes require a substantial amount of collateral as well as a solid credit score. If you meet those requirements, then consider looking into Banc De Binary for opportunities regarding options trading.
Starting to Receive Debt Collection Calls
If you are starting to receive random calls all of a sudden claiming to be for debt collection, it may be time to review your report before you give out information to these requests. While it could just be a medical bill that you thought would be settled by your insurance company, it is still a good idea to make sure that all of your accounts are accurate, up to date, without an unknowing balance.
Victim of Fraud
If you feel any of your information has been compromised you should contact each credit bureau and put a freeze on your account, buying time to review your information before any new accounts can be opened. Once you sort out and new cards are issued, you will have to have the freeze lifted, but could continue with a credit monitoring program.