5 Reasons to Make Credit Score Checks a Regular Habit

While a credit report might not seem important (and a little boring), being in the know about your finances and practicing credit score checks regularly is a hobby you will want to pick up in 2025. As a detailed record of your borrowing history, credit reports chronicle your ability to pay back debts. It allows your potential lenders to assess your creditworthiness – and poor creditworthiness can affect your ability to get a loan, mortgages, credit cards, and even sometimes jobs.

You should check your credit report regularly – at least once a year, but ideally more. The three major credit bureaus which are Equifax, Experian, and TransUnion, allow for one free credit check per year. That being said, many financial experts recommend quarterly checks.

What does a credit report include

A credit report includes the following types of information:

Personal information:

• Your name
• Social Security number
• Address
• DOB

Credit account information:

• Credit accounts (may include closed ones)
• Loans
• Lines of credit
• Records of your payment history
• Hard inquires
• Soft inquiries
• Bankruptcies
• Foreclosures
• Tax liens

Each one of the three major credit bureaus may check slightly different information, and report back on it or weigh it in slightly different ways.

Why it’s important to do regular credit checks

1. You’ll discover errors earlier

It’s not often that credit reports will have mistakes, but it has been known to happen. This is the most important reason to regularly check your credit score — you don’t want inaccuracies to prevent you from getting a loan or opening a credit card. These errors can be disputed with the credit bureau you use to check your score.

2. You’ll spot identity theft sooner

Monitoring your credit report on a regular basis isn’t just to detect mistakes, it’s also to gauge potential identity theft. If your account is being used in a way that isn’t like your normal spending habits, you’ll see it on a credit check, and you can react accordingly.

3. You’ll gain insights into your credit score

Let’s say you check your credit report, and it isn’t what you thought it’d be. By understanding the various factors that influence your credit score, you can take any number of proactive steps to improve it. That means paying your bills on time, reducing your overall debt, and most importantly, avoiding unnecessary credit inquiries.

4. Your financial future will be brighter

Have you been gunning for a loan you just can’t seem to get? A credit report will help you understand why. That’s because a good credit score can unlock lower interest rates on loans, more prestigious credit cards, and better mortgage deals.

5. You’ll be ready for your next milestone

If you plan to make a big purchase like a car or home in the next couple of years, checking your credit report in advance is imperative. Knowing your score can help you assess how ready you are to make the leap and give you plenty of time to get back on the right track.

How to check your credit report

While checking your credit score once a year is a necessity, checking more than once a year can vastly improve your understanding of your finances. Free services like Experian or TransUnion can only take you so far. If you decide you need to get a better handle on your finances, you can use packages from companies like MyFICO to help break down what you’re spending and how to create some better money management strategies.

Contact Information:
Name: Sonakshi Murze
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