Your credit score is one of the most important factors affecting your finances. This is because so many companies rely on it to decide if they want to do business with you. Therefore, it’s generally a good idea to check your credit report and score every few months or so.
But in some situations, it’s especially important to monitor your credit more closely, which usually means checking it more regularly. Here are three examples of when checking your score and reporting every few days or weeks may pay off.
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1. When you work to improve your score
You’ll definitely want to check your credit report and score more often when you’re:
Keeping an eye on your score during this time can help you see if your credit building steps are paying off. And as you see improvements in your credit score over time, you’ll be much more motivated to stay the course, even if paying off debt becomes more difficult in the long run.
2. When you’re about to take out a big loan
If you’re about to get a mortgage or other large loan, it’s especially important to make sure your credit report and score are in top shape.
After all, the information on your report and your score will be scrutinized by lenders. If there is something wrong with your score, it could make a huge difference in whether lenders are willing to give you a loan and what interest rate you have to pay.
When you borrow a lot of money, even a very small difference in the interest rate you are charged can cost you thousands of dollars. You need to make sure that no errors appear on your report and that you don’t take out loans that lower your score and result in a more expensive loan. Keeping an eye on your credit can help you avoid these issues that could cost you dearly for years to come.
3. When you have a reason to be concerned about identity theft
Identity theft can be a major problem, especially if thieves open a lot of credit on your behalf or if you end up being sued by creditors for debts you didn’t know you had.
The sooner you discover a stolen identity, the sooner you can take steps to have information removed from your credit report and prevent further misuse of your information.
Therefore, if you have been the victim of a data breach or have reason to suspect that your risk of identity theft is higher than normal, you should keep a very close eye on your credit.
By regularly checking your credit during these key times, you can:
- Get the best rates on loans
- Minimize the damage if you are the victim of identity theft
- Make sure you stay motivated in your credit building strategies
These benefits are well worth taking a few minutes every few days or every few weeks to check your credit score and build a report.