Why Checking Your Credit Report is Important
When it comes to your finances, you'll want to know every aspect in full at all times.
That includes keeping an eye on your credit report. As we’ve reported before, your finances and your credit go hand in hand. Keeping both up to date and in good standing means less overall stress in your life.
So what all goes into your credit report? You can expect to find a wealth of information that both lenders and creditors will want to see. There’s the basics, like info specific to your identity. Your name, social, DOB, and more are some of the first pieces of information made available here. Check your credit report frequently to ensure this info is accurate; this can be your first line of defense in spotting errors and possible fraud.
Hard Vs. Soft Inquiries
Another major factor included in your report is pertinent info for all of your open accounts. This can include open lines of credit, along with their associated information. It shows when the accounts went live, how well you’ve managed their payments, and much more. Again, stay abreast of these as you’ll want to address any potential inconsistencies.
Your report also shows when someone’s taking a peak at your credit history. This is normal if you’re trying to buy a home, rent an apartment, buy a car, open a credit line, and more. These are called inquiries. The bigger purchases will see what’s known as a hard inquiry, and will often cause your score to drop. Smaller ones, known as soft inquiries, won’t cause any change. The former aren’t a bad thing, but you’ll want to be wary of how many hard inquiries you incur. The more you get, the further your score will drop.
This brings us to the close of our latest entry. For all of your banking needs, there’s Affinity Bank. Contact us today to learn more.