Top Reasons to Regularly Check Your Credit Reports & Credit Scores
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Our experienced Tucson bankruptcy attorney, Eric Ollason, knows that no one sets a goal to file for bankruptcy one day. In fact, most people who file for bankruptcy in Arizona are unexpectedly hit by overwhelming debt from medical bills, divorces, and job losses that they simply cannot bounce back from without help. We understand.
We also understand that most people avoid setting goals to help keep their credit intact.
Typically, the belief is, if you are paying your bills on time, then your credit report and score should reflect that responsibility. However, there is a lot more happening behind the scenes of credit reports than previously believed. And with literally dozens of free credit reporting websites and apps at consumers’ disposal, there is little reason not to peek behind the curtain.
The reality is, checking your credit history and scores can help you better understand your current financial position.
Here is what our Arizona residents need to know about staying on top of these reports.
Regularly Checking Your Credit Report Can Help You Detect and Dispute Errors
Even in a technologically evolved world, errors can still make their way onto your credit report, which can jeopardize your ability to get a credit card, loan, or mortgage.
With regular check-ins, you can spot a debt that is not yours, an error by your lending institution, or even fraudulent activity before it damages your credit rating.
Regularly Checking Your Credit Report Can Help You Be More Aware of What Lenders See
If you are applying for a new credit card, personal loan, vehicle lease, or mortgage, do not take the lender’s word for the type of financial information your credit report reflects. Being proactive — even when you believe your credit reports and scores may not be that great — is the best way to understand why your interest rates are what they are.
Good credit could potentially save you thousands of dollars in interest payments over the course of your life. And although your credit may not be “Good” now, knowing where it stands will allow you to create a plan to improve it. This brings us to the next benefit.
Regularly Checking Your Credit Report Can Help You Improve Your Score
Your credit history is the record of how you have managed your credit accounts.
That may include your:
- Current and past credit accounts
- Information on your payment history
- Total amount owed
Since your credit scores are calculated using information from your credit reports, it is important to regularly check these important financial figures, so you have an accurate snapshot of your total debt. The more you know about your debt, the better you can plan to pay off certain items that may have an immediate positive impact on your credit score and to ensure all the information on your credit reports is accurate and complete.
Contact Our Skilled Arizona Bankruptcy Attorney Today to Schedule a Free Assessment
If you have questions about overwhelming debt that seems insurmountable, contact our experienced bankruptcy attorney in Pima County, Eric Ollason, to learn more about your legal rights and options to start fresh by calling (520) 791-2707 to schedule a free consultation today.