1 The Importance of Monitoring Your Credit Report and Credit Score

Unless you are Warren Buffet, Bill Gates, Mark Cuban or another wealthy American, your credit score can have an enormous impact on your life. Mortgage lenders, banks, car dealerships and credit card companies rely upon your credit report to make accurate decisions about how much credit you are eligible for and what interest rate you should be charged.

Unfortunately, far too many Americans do not regularly check their credit score. Even minor reporting errors can cost you thousands of dollars in interest or result in a denial of your credit application.

Reasons to Check Your Credit Score

There are several reasons why well-informed consumers regularly check there credit report, including:

• Detecting Identity Theft — Identity theft is one of the fastest growing crimes in America. If thieves obtain your bank account information, credit card number, Social Security number or another piece of vital information, they have the ability to destroy your entire financial well-being.

• Catch Reporting Errors — Your credit history is collected by three credit bureaus; TransUnion, Experian and Equifax. Minor errors such as an incorrect late payment or default can greatly affect your ability to obtain credit in the future, as well as cost you significantly more in interest. By reviewing your credit report, you will be able to identify and challenge mistakes and raise your score.

• Correcting Closed Account Information — Your credit score if affected differently depending on how previously open credit accounts were closed. If your account indicates that the credit company closed an account, this is an indication to other lenders that you could be a risky customer. If you were responsible for closing the account, correct it as soon as possible.

If you have questions about how to check your credit score or how you can fix mistakes, financial professionals are available to answer any questions you might have. With the economy struggling to rebound, and more Americans relying upon credit to get them through these tough times, ensuring an accurate credit score is more important than ever.

Author: This post was written on behalf of http://www.lagoodlawyer.com/.