When To Avoid Checking Your Credit Report
Posted by: Staff Writer | Jul 15,2007
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Most everyone knows that you should check your credit report at least once a year. This gives you a heads up to what is going on with your financial reputation. It also lets you know if anyone has been monkeying around with your credit and you've become a victim of identity theft. Few people, however, realize that there are times when you should avoid checking your credit report. There are a few definite reasons to avoid checking your credit report. Knowing when to avoid checking your credit report can save you time, money and save your FICO score from disaster.
When To Avoid Checking Your Credit Report- When your about to make a purchase. Wait, that's when you should check your credit report, right? Right and wrong. You do want to check your credit report before you make a major purchase, but not immediately before. You should check it about six months before to make sure there are no inaccuracies or mistakes. Checking it at least six months in advance lets you fix any mistakes and gives you the opportunity to pay down any large amounts you still owe.
- When your about to rent a new home or apply for a new job. Don't check your credit right before applying for a job or for a rental home. It doesn't look great for prospective employers or landlords to check your credit and see recent inquiries. To them, that looks like you are racking up the debt and might not be able to pay the rent or you're irresponsible with money.
- When you've already had three inquiries that month. After you've had three inquiries on your credit report in a month, your FICO score is diminished. No one can afford to have their FICO score diminished. Avoid checking your credit when you think you may have had inquiries already that month to avoid loosing those precious FICO score points.
- After you've checked it once in that year. This one is the least of your worries. You get one free credit report a year from each of the three credit reporting agencies. After that, there is a charge of anywhere from $4 to $10, usually. The only exception to this rule is if you have been turned down for credit recently, you can get a free report. However, it must be from the credit agency that provided the report to the company that refused you credit.
It's just as important to know when to avoid checking your credit report, as it is to know when to check it. Checking it at the wrong time can be detrimental to your financial future. Give careful consideration when debating whether to check your credit. Make sure it isn't at a time when you've just received new credit or know that you've had inquiries to your credit history.
Making an effort to ensure that it's the best time to check your credit report is a wise investment in your financial future. It seems like a small, trivial detail but in the long run it can make a difference.
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