How to Review Your Credit Reports Every Four Months

One of the fundamental elements of maintaining the security of your good name is reviewing your credit reports on a regular basis. After all, it’s way too easy for someone to commandeer your Social Security number and wreak financial havoc all over the world.

Meanwhile, you’re blissfully enjoying your life, thinking you’ve done all the right things to keep your credit score high. You’re paying your bills on time, avoiding carrying balances from month to month and keeping your credit utilization low.

Those are good first steps, however you also need to know how to review your credit reports every four months — free.

Why Your Credit Reports Matter

Creditors report your financial activity to one or more of the three credit bureaus in the United States; Experian, Equifax and TransUnion. These companies assign a score to that information based upon an algorithm invented by the Fair Isaac Corporation.

The resulting numerical designation, ranging from 300 on the low end to 850 on the high side, is known as your FICO score. This figure is used to determine your creditworthiness and the interest rate you’ll be charged for loans. It can also figure into whether or not you’ll get an apartment, insurance and even a job in some cases.

Why You Should Review Your Credit Reports

Your credit reports are the repositories of the history of all the transactions attributed to your Social Security number (SSN). In other words, any financial transaction in which your SSN is involved gets noted on your credit reports.

Reviewing them on a regular basis can help you spot mistakes creditors may have made, as well as any fraudulent activity being conducted in your name. Errors and/or unauthorized usage could make your score artificially low, which can cause you to be turned down for loans and/or charged higher rates of interest than you deserve.

For example, let’s say you’ve applied for a credit card consolidation, certain you’d get it because you’ve maintained your finances in an exemplary fashion. However, your application is denied and you have no idea why. Had you been monitoring your credit reports on a regular basis, you’d have been aware of the existence of the information that got you refused before you applied.

AnnualCreditReport.com

Owing to the importance of maintaining a situational awareness regarding your credit history, the Federal Trade Commission has mandated you be provided access to all three of your credit reports (each of the bureaus issues its own) on an annual basis.

In other words, you’re entitled to a free copy of each of your reports from the three major credit bureaus — Equifax, Experian and TransUnion — once every 12 months. You can also get free copies if you’re turned down for credit or a job based on information contained in one or more of your credit reports. Ditto if you think you’ve been victimized by identity theft or credit fraud.

Each of your free annual reports can be obtained at AnnualCreditReport.com or by calling 1-877-322-8228.

The call is toll free.

Getting Free Tri-Annual Reports

OK, so the FTC says you can have access to your credit reports on an annual basis. However, they don’t say you have to take all three of them at once.

You can also request one of them every four months.

Let’s say you start with Experian in January. You can then request Equifax in May, TransUnion in September and go back to Experian the following January.

This gets you a look at your report every four months instead of once a year — at no cost. Now you’re in a better position to respond to changes more quickly, which can help you minimize potential damage to your credit history and your good name.