Changes in Credit Reports

What they could mean for your life

A lot of people find this site looking for information about credit reports.  Maybe they are considering trying a credit monitoring service.  Those that do try such a service usually stick with it because the cost is so low (pennies a day) and the benefit so high (potentially tens of thousands of dollars).

Why do savvy consumers stay on top of the information that credit bureaus collect?  Because credit scores affect more aspects of a person's life than most of us would care to know.  Even if you never borrow a dime, undetected damage to your credit scores can cost you dearly.

For one thing, rates for all kinds of insurance hinge on the credit score of the insured.  Premiums for life insurance, car insurance, and home insurance all take a hit when your credit score declines.

For another thing, anybody who is checking up on you in any way -- a potential business partner, employer, or even romantic partner -- is likely to check your credit reports.  Do you want to lose a business deal because of a mistake in your reports?

"But my credit is excellent," you may be thinking, "I have nothing to worry about."

Really?  Fully 25 percent of credit reports were found to contain errors in a recent study.  As we all have three credit reports, it is possible that one in every two people are affected by these errors.  The mistakes happen for a variety of reasons from data entry to fraud on the part of lenders to the worst of all: Identity theft.

You can nip all that in the bud and rest more easily by constantly monitoring your credit scores on all three bureaus.  Catch changes in your credit reports early, and the damage will be minimized.  That is why people are willing to spend a few cents a day to monitor their credit ratings even though the law provides them with a free report each year from each of the bureaus.