Is Checking Your Own Credit Score Good?

Checking your own credit score helps to assure that you have the highest score possible. Credit reports can include inaccurate information that you need to correct. Additionally, checking your credit score may discover identity theft, which can cause significant harm to your credit and your finances. Even if the credit report proves to be completely accurate, review it periodically. This way, you can assess areas where you might improve your finances and spending to raise your score in the future.

Error Finding

Errors in your credit report can significantly affect your credit score and you should have them corrected. The credit bureaus must fix any verified mistakes after you submit a written request. Ideally, your request will include specifics to prove the report incorrect. Inaccurate reports of late payments, for example, are particularly harmful to your credit score and you should challenge them when found.

Awareness of Your Score

Knowing what your credit report includes will help you respond to any problems and repair your credit. A credit report provides a consolidated overview of your credit history -- good and bad. In addition to showing aspects of your credit you might need to fix, a review of your report may show strategies for increasing your credit score that have nothing to do with amounts owed. For example, it might be useful to charge a new purchase on an old credit card because it will keep the account active. Old, active accounts help to increase credit scores.

Identity Theft

Credit reports can be very helpful in the discovery of identity theft. If charges appear on your report and they are not yours, it might be a clerical error, but it also could be someone stealing your identity. You should report these charges to the credit-reporting agencies and to the credit card company. Prompt reporting of suspected identity theft will help to reduce the risk to your credit score.

Annual Reports are Free

You can get a free copy of your credit report annually from each of the three credit bureaus through Annualcreditreport.com. Generally, a review of your credit report every 12 months should be sufficient. You can order copies of your report more often, though the agencies will charge a fee. Too many inquiries into your credit score can actually lower it. But annual checks should not materially affect your score, and the need to assure accuracy is significant.