There are numerous reasons that you should pull your free annual credit report from http://www.annualcreditreport.com. Below we have outlined some of the best reasons for doing so.
1. Well…it’s free to pull your credit report
The Fair Credit Reporting Act (FCRA) requires that the 3 big reporting agencies Experian, Transunion, and Equifax provide you with a free copy of your report once for each rolling 12 month period. Since it is in fact 100% free according to Federal law, you have nothing to lose by requesting it.
2. Review your report for accuracy/fraud
There are countless examples of people who have been hit with identify theft that has gone on for years that could’ve been easily noticed by accessing their annual credit report. Get your report, review it for accuracy, and initiate disputes with the credit bureaus for any items that you do not believe are yours. Even if you are unsure of something on the report, dispute it! The worst thing that can happen is the item will be verified – best case scenario is the item will be removed completely.
3. Track your progress
Nothing is quite as satisfying as seeing a derogatory item that such as a late payment, an item sent to collections, or a repossession fall off your credit report on the following pull. Once you see some of these items fall off you can be sure that your credit score has significantly improved and that the terms of your next loan are going to be much better!
4. Everything else
You can calculate your debt to income ratio, find out what creditors see as potentially recurring bills and just obtain an overall sense of your financial well-being. If you are concerned about buying a house, car, or any other type of major purchase, you should absolutely be reviewing your credit report to make sure everything is accurate. One of the best things you can do by pulling your report is dispute items. Whether or not the item is legit, the reporting company needs to prove its accuracy or else it is required by law to be removed from your report. This is an extremely powerful weapon to have in your pocket. There have been several items removed from my credit report just be being persistent in my disputes. There will be another article published in the near future with the methods you can use to dispute items.
Accessing your free annual credit report is 100% free and can provide numerous benefits for your financial and mental well-being. If you have not done so in the past 12 months – we highly suggest pulling this today!