Monitor your free credit score from all 3 credit bureaus
3 credit scores is the most important financial document for most one of us. The annual document provided by the three independent credit agencies can disclose the financial health of an individual. This report which is annually provided for free by institutions such as Equifax, TransUnion and Experian which are recognised by the government will help the individual in understanding the different credit transactions done during the year. It also enables to assess the quality of financial health by the credit score so allotted by the agencies.
The quality of credit payments, bad account management, low balances in the credit card etc., can have an adverse effect on the score of credit. It is therefore, very important to maintain and monitor the report on an annual basis to check for any wrong entries, identity frauds or non-reporting by creditors if any and get it corrected by reporting to the agencies. If the discrepancies are not attended to in time and the same if reflected on the credit score, it can have an adverse impact on your future finances.
The 3 Credit Reports as maintained by these agencies are usually accessed by the lenders and creditors after making the due payment to make background check of people who approach for loans, apply for job, apply for insurance and credit cards. The consolidated report provides an easy snapshot of the individual’s financial health and past payment history, which is in turn used in decision making by these lending institutes. Having a low credit score can devoid the individual of getting financial health in times of need, credit cards, health insurance etc., and can put immense financial pressure.
Accessing the free credit score from all 3 bureaus are extremely easy. One would just have to approach the independent agencies or request for the same on the AnnualCreditReports.com website to get a free copy. As each agency has a different method of maintaining the records and calculating the credit score, it becomes essential for the individual’s to access the report to identify the mismatches if any. It is very essential to have the credit score provided by each of these agencies approximately matching in order to have a good financial health and loan approvals in case of need. Having a bad credit score from one of these agencies can create problems while seeing low cost life insurance, credit card with low interest rate and even housing loans.
Tracking the annual 3 Credit Reports are one of the best ways to maintain a good credit score. This can be done by seeking the help of the credit monitoring service companies by paying the monthly fees. They would help keep a track on the reports from the three major credit bureaus. One would have to do enough research to seek the services of these companies in order to get immediate alerts if any discrepancy happens in the account. Seeking the service will enable the individual in understanding the credit score at all times and plan for steps to improve the same.
The 3 credit reports issued by the three major agencies act as a full representation of an individual’s financial health and identity making it extremely essential to monitor on a regular basis to avoid future financial complications.