Why you should keep close watch on your credit report
There has been an exponential increase in loan frauds through identity theft.
- Identity theft cases involving fraud loans pop up on your credit report
- Financial fraud is costing Americans hundreds of billions of dollars every year
- A good credit score portrays you as a financially responsible person
In general, every individual should check their credit report from time to time. Your credit report basically sums up how you have dealt with loans and credit cards to date. Factors like your loan repayment history, frequency of loan applications, missed payments, and credit utilization collectively determine your financial creditworthiness in the form of a credit score. These details are also available in your credit report.
A credit score is one of the most basic financial stats that lenders check to understand if you are someone who won’t miss their loan repayments. It also determines your insurance premium rates and may even affect your job applications.
Because of this, checking your credit score is of the utmost importance, especially if you have a low credit score and are attempting to create a recovery plan. There are also other vital reasons to check your credit score on a monthly basis.
Avoid Financial Fraud Report after report has found that financial frauds through identity theft are growing at an alarming rate. The financial losses related to identity theft have grown by $200 billion by the end of 2021 compared to the pre-pandemic world in 2019. Identity theft complaints have already risen by millions.
If someone uses your personal information to open a loan account or secure a credit card, it will reflect on your credit report. If you see any unfamiliar loan accounts, late payment fees, or changes to your personal information in your report, you can raise a dispute and fix the situation ASAP.
In cases of identity theft, lodging a timely complaint with the cybercrime division is vital in containing financial damage. If you need help keeping track of your credit report, you can use a free credit monitoring service.
How a Credit Monitoring Service Could Help
Credit Karma can fetch your credit report from Equifax and TransUnion every month – completely free of charge! You can also use their free credit monitoring feature to get alerts on any loan inquiries, new loan accounts, credit limit changes, or changes in personal information in your credit report. In case you are unsure about an entry or change on your credit report, you can also raise a dispute through the Credit Karma app to get to the root of the problem.