A Guide to Credit Report Reviews in these Sensitive Times

In order to protect your future and develop a sound financial plan, you need to make sure you have your income, spending, and investing on solid ground. Of course, it’s also important to ensure that your credit report is accurately representing your financial situation. 

Credit reports count for a lot, and the data they contain can drastically change your access to credit lines, loans, and low-interest rates. In fact, to ensure that the information in your credit report is accurate, you should perform a thorough review at least once a year.

However, due to the COVID-19 pandemic, there may be an even better solution. Below, we’ll explain some recent rule changes that can grant you better access to your score.  

What: New Weekly Review Rules

You may already know you are entitled to one free credit report per year from each of the three major reporting agencies. However, since COVID-19 has had such an enormous impact on global financial markets, there has been an update. As of the most recent updates, you are now allowed to review your credit score once per week, free of charge.

Why: Identity Theft and Reporting Errors

There are two main reasons to check your credit score as often as possible in this post-COVID world. The first is the possibility of identity theft. Criminals are becoming more adept at opening bank and credit card accounts, taking out loans, and even renting homes with stolen information. The sooner you can identify potentially fraudulent activity, the sooner you can work with the authorities to resolve the issues they create. 

Another reason to check your credit score often is to look for any reporting errors that might negatively affect your rating. These instances are, unfortunately, not uncommon. In fact, in 2020, the largest federal student loan servicer incorrectly coded many student loan borrower’s statuses as “deferred” when, in reality, Congress had authorized all federally backed student loans to pause on payments[1]. 

Your credit score is a big determining factor in your ability to rent an apartment, buy a home, or take out a loan. If it’s incorrect, you could end up paying exorbitant interest rates or missing out on important opportunities. 

How: AnnualCreditReport.com       

The best way to review your credit report is with annualcreditreport.com. 

This one-of-a-kind website is authorized by the Federal Trade Commission[2] and sponsored by all three major credit reporting agencies: Equifax, Experian, and Transunion. It’s important to understand, however, that each of the three agencies has its own form to complete.

Luckily, all you need to do is answer a few questions about yourself and you’ll be on your way. Just be sure you have access to all your past information, including old addresses, credit accounts, and employers. This will only help the credit companies ensure they’re dealing with the correct person. 

I hope something in this article helped you out.

If you want to work with a planner who will help you understand how your finances can work for you, reach out to me at Shane@EWPadvisor.com or schedule a free consultation.

 [1] https://www.politico.com/news/2020/05/20/emergency-releif-student-loan-272334

[2] https://www.ftc.gov/faq/consumer-protection/get-my-free-credit-report