Your credit report provides detailed information regarding your credit and payment history. This report determines your financial position, which affects your application for any form of credit that you need. Therefore, it’s necessary to monitor your credit score, so that you don’t hit a bump in the road when you’re making a major financial decision.
Here’s when a detailed review of your credit report is necessary:
You plan to apply for loan
When you apply for a loan, your credit report is used to assess how “risky” or “safe” you are as an applicant. This includes applying for credit cards, mortgages, and other loans. Knowing your credit score and details of your credit report will indicate whether a lender will approve your request.
Every credit application reduces your credit score, so you must limit the number of times a lender checks your credit. If a lender gets your report when your score is low, an unnecessary inquiry will be underway. We always recommend clients to check their credit report and hold off on credit applications until their score improves.
You were denied credit
If you’ve applied for a credit card and have been denied, you need to take a closer look at your credit report. The rejection letter sent by the financial institution also mentions how you can get access to your credit report. Make sure you request this free report within 60 days of the rejection.
Reviewing this report will help you understand why you didn’t qualify for credit. Common reasons for being rejected include poor credit score, too many existing bank accounts, bad debt, etc.
Your credit report has errors
Credit reports won’t always be 100% accurate. Scrutinize your report to check for errors.
Employ the help of a professional to help you out. Credit building companies challenge errors on your credit report and file disputes on your behalf. Removing negative items and errors from the report instantly improves your credit score.
You suspect identity theft
A malicious third-party can hack into your account and get hold of your personal information within seconds, leading to identity theft. Once these cyber criminals have access to important personal and financial information, they can make transactions as they please. Approximately 167,000 Americans fell prey to credit card fraud as a result of identity theft in 2018. Your credit report can help you ensure your credit profile is accurate.
Improve your credit report with the help of our experts at Masters Credit Consultants. With many years of experience, our financial advisors are able to help with credit repair and building. We also provide free credit consultation that will help you plan for your future. Get in touch with us at 1-844-620-8796 for more information.