Between paying bills, monitoring your investments, and paying close attention to your monthly budget, it is common to feel overwhelmed by financial responsibilities. This is a common reason that many people choose to put off certain financial tasks that are better done today. For example, many homeowners, families, and individuals do not feel any urgency to check their annual credit reports. However, there are some situations where it simply cannot wait and you must know the signs and reasons that you need to check it right now.
First Time
It might surprise you to learn that the majority of 25-35 year olds have yet to look at their credit even once. By law, you are entitled to see your credit reports once per year at no cost and MyCreditMonitor – Free Credit Report is one such place to take a look at your credit report. Today is the day to take advantage of the fact that checking is free because reviewing your reports is the best way to catch potentially costly mistakes.
Up to 20% of consumers currently have errors on at least one of their credit reports. Due to the fact that this information is used to create your credit scores, a mistake might mean that your score reflects lower than it should. This can result in higher interest rates on loans and credit cards or you may be denied for new credit altogether.
Too Long Since Your Last Check
If you have not reviewed your score since last year, it is in your best interest to consider doing so right now. Only 34% of adults ordered a copy of a credit report in the past 12 months, which is a surprisingly low number. Some of the remaining 66% feel they do not need to check, while others simply do not think about it. There is no time better than right now to check this off of your to-do list, and most lenders report account information on a monthly basis, meaning that your reports should be up to date. Utilizing a free checking service should help you to catch errors as they happen and avoid serious financial burdens later on.
Applying for a Mortgage
Whether this is your first time buying a home or your third, it can only help you make an informed decision to check your score today. Getting a home loan requires a rigorous application process including careful review of your credit by the prospective lender. By checking your reports before you submit your application, you get a sense of your chances of approval and what your interest rates may look like.
In addition, the same companies that offer you free credit checks also offer advice, useful information, and functional tips to help you get the loan you need with reasonable interest rates. By choosing the right people to help you, you give yourself the chance to get a loan that can fit inside your needs and provide peace of mind. No matter when or where you move, you deserve as much of a chance for success as possible.