- Person looking at laptop screen showing a credit score of 751

Why You Should Monitor Your Credit Report

The Importance of Monitoring Your Credit Report

Your credit report is one of the most important financial records that you have. It contains details about your credit history, including how much debt you have, whether you've made payments on time, and other information that lenders use to determine your creditworthiness. A good credit report can help you qualify for loans, credit cards, rental housing, and even jobs in some cases.

Unfortunately, credit reports sometimes contain errors or inaccuracies that could potentially hurt your credit score and your ability to get approved for financing. This is why it's crucial to monitor your credit report regularly. Here are a few key reasons why you should check your credit report:

1. Catch errors or inaccuracies
Credit reporting agencies don't always get everything right. There could be mistakes on your report, such as accounts that don't belong to you, late payments that were actually made on time, or other errors that could drag down your credit score unnecessarily. Reviewing your report allows you to catch these issues and dispute them.
2. Detect signs of identity theft
Monitoring your credit report allows you to look for any suspicious activity, such as new accounts or credit inquiries that you didn't initiate. This could be a red flag that someone is using your information to open credit lines in your name fraudulently.

3. Maintain a good credit score
Since your credit report provides the basis for your credit score calculation, any negative items on your report could be hurting your score. Checking your report regularly lets you see what factors may be impacting your score so you can address them if needed.

4. Preparation for major purchases
If you plan on making a major purchase like a home or car in the near future, you'll want your credit report to be as accurate and positive as possible. This will give you the best shot at getting approved with the best interest rates.

Did you know?  You can check your credit score and report 24/7 with My Credit Report on Flatwater Bank digital banking?  Click here to learn more. 
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