You should check your credit report and score every year to make sure that you are in good credit health. This will help you when you want to buy something. You can check your own credit report without it affecting your credit score. So, what should you look for? Let's explore.

Mistakes

When people write things down or record your information, mistakes can be made. Carelessness or incorrect methods of calculation can mean your numbers are wrong.

Incorrect info can really hurt your credit score. So, look over your credit report carefully, and if you spot any mistakes on your report, update them immediately. Double-check all of your personal information, including your birthday and any other identifying data.

Errors

Errors often occur due to a lack of information, wrong judgment, and miscalculation. Incorrect information leads to the wrong actions being taken to calculate your credit.

Credit agencies make mistakes sometimes, so once again, it is important to carefully look over your credit report to make sure that all the information is correct.

If you find any errors, the credit agency is required to make changes to them. You should also send a letter to the credit bureaus letting them know there was an error. 

Make sure to include a copy of the letter you sent to the credit agency who incorrectly reported your information. This will help motivate them to take care of the problem quickly.

Outdated Info

Once again, if you discover information that is outdated, let the credit agencies know immediately. Just know that sometimes even though you may have fixed certain things, or they may be in better condition now, some info will stay on your statement for a while.

After a certain amount of time, credit agencies are required to remove certain information from your credit. If you make your payments on time for a while after being late, your credit score will go back up, though the late payment history will stay for 6-7 years.

Fraud

Identity theft is a serious problem. It can ruin your credit score and report. It can be done by someone you know or a stranger. Be smart and protect your credit from all possible threats, including the ones you know about and the ones you don't.

Why is it important to fix mistakes?

Making small mistakes, like spelling your name wrong or putting the wrong address on your house, can lower your credit score.

Keep your credit score high by monitoring it every year. Choose a date that is easy to remember, like your birthday or the day you file your taxes.

If you’re going to be in the market for a new home, you should be well aware of your credit score and do everything you can to boost your credit score, and make sure all your info is 100% accurate.