Do you monitor and analyze your credit report? If you don’t, you should. Being aware of your credit score is crucial as your credit determines your eligibility for large purchases like a car, home or personal loan.
The Importance of Monitoring and Analyzing Your Credit Report
It’s recommended that you check your credit report at least once a year to ensure no errors need to be disputed. However, keeping tabs on it regularly can help spot discrepancies early on. Monitoring and analyzing your credit report helps tremendously with keeping track of your payments and outstanding debt. It can even be exciting to see your credit utilization go down and your scores gradually improve with each payment. Staying on top of your activity makes it easier to stay motivated to meet your financial goals, as well. I personally check my credit report once a month thanks to resources such as Credit Karma, Credit Sesame and Discover.
Credit Karma is one of the free resources that allow you to stay on top of your credit. Recently, they’ve added in the Credit Report beta feature that allows you to see exactly what financial institutions can see when they view your credit report. Other beneficial features include the credit utilization report, the recommendations available for those seeking loans and the ability to read reviews about different financial institutions. Credit Karma not only allows you to monitor your credit report as often as you need to, for free, but they also have a ton of other resources available to aid you in improving your credit score.
Credit Sesame has a lot of potential. The main drawback is that you have to invest money in the site in order to use it to its fullest potential. Before Credit Karma introduced its free credit report feature, I would often pay to access my credit report through Credit Sesame. However, like Credit Karma, your credit score is always available to you for free. Additionally, the company notifies you when something happens on your credit report, and you can even set goals to see how close you are to getting your credit to where you want it to be.
Credit Card Companies
Some credit cards companies offer users their FICO score each month with their bill. This is one of the easiest ways that you can be sure to stay on top of your credit. Other credit card companies use this feature as a way to entice their users to sign up for paperless statements. Take Walmart for example. Receiving my FICO score each month on my statements is great when life gets busy and I don’t want to take the time to use other credit services.
If you want to make sure that you are able to get the things you desire and to clear lingering debt, it’s important to monitor and analyze your credit report frequently. Credit scores play a large role in obtaining loans, financing, housing and much more. You’ll come to find that through regular monitoring, your financial health and well-being will surely benefit.