Why Running Your Credit Report Annually Is Important!

Does the thought of your credit score make you nervous?

Many people worry about their credit score and credit problems. The how and what that go into calculating a credit score seem like a mystery that isn’t worth trying to tackle. It is true that the formulas used by the credit bureaus aren’t public knowledge. And, each reporting agency uses their own variations on the scoring formula. But, there is good news. Consumers don’t need to know the exact formula they just need to know (in general) what helps and what hurts their credit scores.

That three digit credit score number can determine whether you can get a new house, or a new car – and more than that it determines what interest rate you are eligible for. Did you know? The general factors that go into calculating a credit score are: payment history, debt, age of accounts, the number of new accounts you have and the types of credit accounts you have open.

On top of those main scoring factors. Many people worry about the impact “inquiries” have on their credit score. The result? You may try and avoid having your credit report pulled often, and may even decide NOT to pull your own credit to review what the bureaus are reporting because of this concern. But, this is a dangerous pitfall that can result in misreported items not being corrected or worse you may not realize that your identity has been compromised. Plus, it is important to note that the credit report we recommend you pull is a “soft” pull which means pulling it will NOT affect your credit.

In order to avoid identity theft, or credit reporting mix-ups you should pull your credit report at least once a year. Under the Fair and Accurate Credit Transactions (FACT) Act, you are entitled to a free look at your credit report annually. And the three major credit reporting agencies have made it easy because they came together and founded the website annualcreditreport.com to allow consumers to do just that.

If you have questions, or would like more information click here to learn more about what your credit score means, steps to dispute mistakes, and to find addresses for the three major National credit bureaus.

Share: Share on Facebook: Why Running Your Credit Report Annually Is Important! Share on Twitter: Why Running Your Credit Report Annually Is Important!