How Often Should You Check Your Credit Score?
Having a good credit score can open up a lot of doors. Interest rates will be lower for all loans and you will have the opportunity to finance larger purchases, like a new home, or open up a line of credit. Good credit is important in today’s society, perhaps more than ever. One of the questions that many of us ask is how often you should check your credit score. Keeping tabs on your credit will ensure the best success, and here are some tips on how to check and what to look out for:
The ability to check your credit score is a great thing since it can give you a glimpse into any potential fraud. For example, if someone were to obtain your credit card number to make purchases, it’s likely you would be able to spot it quickly with a glance at your banking statements. You can then report this unusual activity to your credit card company right away, and any negative impact on your credit score would be erased.
However, if someone were to obtain your social security number, it’s possible that they could open a new line of credit or take out other types of loans in your name. You likely wouldn’t notice this right away as you would with credit card theft. This is one of the reasons you will want to check your credit score to keep tabs on any potential cases of identity fraud.
Another great reason to regularly check your credit score is to see how it is improving. If you are making regular payments to a company that reports to credit bureaus, you can actually see the impact it is having on your credit. If you are in the process of rebuilding a weak credit score, check regularly to make sure your on-time payments are reported, and watch your score improve over time.
Anytime is fine
You can obtain a free copy of your credit report at any point in the year for free. There are two credit bureaus that cover the entire country: TransUnion Canada and Equifax Canada. Make sure to check with both bureaus to ensure that your credit reports match entirely.
For these reasons, obtaining your credit score in Canada is a free and convenient process and you can do it whenever you feel fit. It’s ideal to check on your score every three or four months to make sure there haven’t been any major changes or errors.
Search for errors
Frequent credit score checks can allow you to view errors that can damage your credit score. You can get them fixed quickly if spotted in a short amount of time. If you do see an error when you check your credit score, always act right away and contact the credit bureau in question.
TransUnion and Equifax have online dispute forms to make it simple to report your errors. You will be able to give detailed information as to why the error on the report is just that, an error. Send any documents that will support your claim as well to help extradite the process.
Many people think that checking out your own credit score will have a negative effect on your score. This is not true! Looking into your personal credit history will never have any impact on your score. Therefore, it is wise to check it periodically to catch any signs of fraud, look for errors, and determine your overall credit health.
At Trillium Auto Group, we want to work with you to improve your credit score. That’s why we report your on-time payments to Canadian credit bureaus. By sticking to one of our auto payment plans, you’ll watch your credit score improve over time. Contact us today to learn more about how our process works.