Most people underestimate the importance of the free annual credit report they are entitles to receive under the FACT Act. There are many reasons why you should obtain and check it.
First – a good credit score means lower interest rates and monthly payments.
Your credit score is based on the information that’s on your credit report. According to a study released by the US PIRG (Public Interest Research Group) in June 2004 – up to 79% of the consumer credit reports surveyed
contained some kind of error or mistake.
These errors may lower your credit score, costing you hundreds of dollars in excess interest rates and payments. A low credit score can also cost you more in insurance or when renting a home. If you have a low credit score you may be declined of a loan or a credit card, and may even fail to get a job!
Although not all errors do eventually affect your credit status, it is still curtail that you order and review your free yearly credit report.
Another very good reason for checking your credit reports is that often this is the first place people detect credit fraud or identity theft.