There are several simple steps you can take today to start saving money and protect your financial outlook. One of those steps is to begin credit monitoring and staying informed of whats on your report. Not knowing what is being reported on yours can be a costly mistake that takes years to repair.
When you apply for any type of loan or financing, the lender will call upon your report to determine not just your eligibility but also your interest rate. Persons with a higher score will generally be approved for more funds at a lower interest rate. A lower interest rate means less that you will have to pay in the long term.
Aside from determining an interest rate, scores also determine approval of the loan entirely. A person with a low score is not as eligible for financing as a person with a better score is. This means without a decent score, you may not be able to secure funds for a car or house.
By being aware of what is on your report and what your score is, you are taking a proactive step to a more financially secure future. Review your report at least once a week and check for mistakes, who is reporting, and for what reason. The old adage of “knowledge is power” especially rings true when you stay informed of what’s on your personal report.
Mistakes in credit reporting are not uncommon. Human and computer error can often lead to costly misprints. In the event of a mistake on your report, the only way to fix it is to report it to the credit agencies. If you are not aware of the mistake, you can’t report it, and it can lead to costly situations in the future.
With identity theft on the rise and hackers breaking into mainstream high-profile businesses and stealing social security and credit card numbers, now more than ever is the time to protect oneself. Taking an active interest in your cyber security can save you from falling victim to hackers and thieves. Always protect information you have online by verifying the websites you use are secure and creating unique passwords that are hard to crack.
Making wise financial decisions such as paying off high-interest balances, saving money each month for retirement and emergencies, and credit monitoring are all things you can do to save money and protect your identity. Identity theft and mistakes on a credit report can cost a person thousands of dollars. It can also create a situation of stress and years of worth to repair it once the damage is done.
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