Why It’s Essential to Have an Active Role in Watching Your Credit

Why It's Essential to Have an Active Role in Watching Your Creditfeatured image

Posted on February 22, 2023 by Rick Griffith

An essential part of your financial future is regularly monitoring your score. A solid financial foundation will allow you to get approved quickly with the best loan terms and interest rates.

You should monitor your score each month because changes can affect everything from loan approvals to insurance rates. Routine credit report monitoring can help you identify errors or fraudulent activity that may impact your score.

Additionally, knowing your credit history will help you make better financial decisions, such as when to apply for a loan or how much debt you should take on. By actively watching your history, you can maintain a healthy financial life to achieve financial success.

Here are three main areas you should focus on while keeping an eye on your score:

  1. Finances reporting activity
  2. Age of active accounts
  3. Your payment history

Finance Reporting Activity

Essential indicators of your financial behavior get impacted by lender reporting, which is entirely voluntary and not always reported to all three credit reporting agencies. That information gets used by loan underwriters, employers, insurance companies, and landlords to determine whether or not you will be a responsible borrower or tenant.

Understanding what goes into a credit report and the score is essential to ensure that information accurately reflects your financial situation. Otherwise, there’s a risk your economic history could get out of control or, worse, get damaged by fraud.

Age of Active Accounts on Report

A credit report is like a financial snapshot over your lifetime. It contains information about your accounts, how much you owe, and how well you manage your money.

Knowing the age of each loan account can tell you when it is time to open new accounts or close old ones, as well as when to pay down debt to improve a credit score. By understanding the age of each account on your report, you can make informed decisions about managing your finances.

Your Payment History Can Impact A Credit Score

Regardless of a credit score, payment history is among the most critical factors. Your payment history reflects how you have paid back your debts and loans. 

It can tell lenders whether or not you are likely to pay back any new loans or credit cards they may offer you. Understanding how your payment history impacts your score is essential to maintaining a good score and obtaining access to better loan and credit card offers.

In addition, please make sure to steer clear of third-party credit score services. You’ll get the most accurate credit history and score by going directly to one of the three credit reporting agencies, like Equifax.

Car Credit, Working to Get You Back on Financial Track

The first step toward self-advocacy is educating yourself on your credit to keep it in good standing. The Car Credit team understands that we all face financial challenges from time to time. But unfortunately, these past few years have hit many Americans’ finances hard, and there’s no team working harder to safeguard your privacy regarding your financial health.

It’s is also true for every vehicle Car Credit sells. Their rigorous reconditioning program ensures your and your family’s safety. At Car Credit, all vehicles sold must pass quality standards of safety and reliability to get put up for sale to the public. Cars that don’t meet those quality standards get sold wholesale.

That’s the kind of service you should expect from any dealership. To get started, complete an online credit application and look through Car Credit’s current inventory of cars, SUVs, and trucks. After all, you and your family are worth it to the team at Car Credit.

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