(ARA) – Concerned about the credit crunch? It’s understandable if you are, since financial experts are broadly predicting that the crunch is only going to get worse, even for those with unblemished credit reports. In this economy, it’s more important than ever to be pro-active about monitoring your credit score.
You need to check your credit report regularly, and not wait until you’ll be applying for new credit, like an auto loan, mortgage or even a credit card. Knowing what’s on your credit report could mean the difference between getting favorable or less-than-favorable terms the next time you apply for credit. It’s the first step toward reaching your personal financial goals.
Still not sure you need to monitor your credit report? Consider these facts:
Ignorance is not bliss when it comes to your credit report. While the credit bureaus strive to provide the most accurate information possible, they can’t do it alone. They need consumers to keep an eye out for errors and alert them right away when one occurs. If you’re monitoring your report regularly, you’re much more likely to catch and correct errors right away – before they can affect your credit standing.
Identity theft continues to rise, and in a down economy is likely to become an even greater problem. Multiple studies indicate that the average ID theft victim spends around 40 hours to correct the damage done by identity thieves. While the majority of identity theft still occurs in traditional ways – stolen trash or mail – Internet-based ID fraud is on the rise. Your credit report is an important tool in helping you catch and correct identity theft early.
With the credit crunch playing out in markets across the country, consumers need to develop and nurture smart credit habits. Wise credit moves include:
* Paying bills on time every month. Or, if you’re having trouble paying all your bills, working with creditors in good faith to establish livable payment terms – and preserve your good credit standing.
* Pay down highest interest debts first, since they cost you the most over the long-term.
* Or, if you have debt with a low balance that you can pay off relatively quickly, do so. It will illustrate to potential lenders that you pay off your debts, plus you’ll enjoy the emotional bounce you get from lightening your debt.
* Monitor your credit report regularly. Signing up with services like FreeCreditReport.com can give you more control over your personal finances. Checking your credit report online simplifies the confusing world of credit information to give you more control over your personal finances.
* If you find errors or evidence of fraud on your credit report, quickly notify the credit bureaus in writing, and work with them to remove incorrect information from your record.
Courtesy of ARAcontent
