If you are anything like me and like to make plans now to ensure that your going to be financially secure in the future, you might want to know why I got a free copy of my credit report. Even if you don't have a car or a mortgage yet, it is important to know exactly what is on your credit report. Every major financial decision you are going to make in the future is determined by your credit score.
If you are wondering about your credit the first thing to do is obtain a copy of your free annual credit report. You can get these with TransUnion, Experian and Equifax. All 3 of these companies are obligated by law to give each individual a copy of their report once a year. These free credit reports you get annually are a good insight into your credit, by offering a log of all your accounts and your record of payments you have made in that year. However, they do not give you your 3 digit credit score. This 3 digit credit score is what reputable financial institutions are going to judge you by when you make an application for a loan or credit.
If you are planning on making a large purchase, it is important to check your credit report. You need to check your report at least six months before you even decide on making an application. If any inconsistencies come up in your credit report this should give you a good amount of time to adjust them before any company sees your credit score. There are things you can do to correct your credit score. Paying off some of your debt and making one-off payments are 2 good ways of bumping up your credit score. Another way to keep your score up to par is keep any accounts open, even if you don't use the credit card anymore.
Identity theft is also a good reason to look into your credit history. This crime is out of control, and checking your credit report regularly is a fantastic way to keep identity thieves at bay. Report any unusual activity right away to the relevant companies. Catching things quickly can save you thousands, and can keep your credit from being ruined forever. I am so pleased I decided to get a free copy of my credit report. There is no excuse to be uninformed these days. Getting your own free credit report can even save you money when negotiating interest amounts on your loans!