How Often Should You Check Your Credit Report?

How Often Should You Check Your Credit Report?

At the very minimum, it's recommended that you review your credit reports annually. However, a lot can happen over the course of a year, so quarterly reviews can make it easier for you to stay on top of your credit and address potential issues before they cause damage to your credit score.

Other situations where it makes sense to review your credit files include:

• At least three months before you plan to apply for credit to fund a big purchase, like a house, car or a boat
• If you get a notice about a data breach
• If your wallet, credit card or personal information (like your Social Security number) is stolen
• After a major change, such as opening a mortgage account or paying off your student loans
• If you see a dramatic swing in your credit score and don't understand why it happened

To help you remember, consider setting calendar reminders based on how often you want to review your reports.

Why It's Important to Check Your Credit Report Often

Reviewing your credit reports regularly can make it easier for you to build and maintain a good credit history and minimize the potential risks of negative information, regardless of its source. In particular, here's how regular credit monitoring can help.

Stay Proactive Against Fraud and Data Breaches

In many cases of identity theft, the victims are unaware that their personal information has been stolen and used without their permission. In particular, criminals may use your name, Social Security number and other details to fraudulently open credit accounts in your name.

When checking your credit reports, watch out for accounts you don't recognize, particularly if there's negative information, such as past-due payments, attached to them.

Spot and Dispute Errors

Damaging credit report errors are uncommon, but they do occur. If you find any information on your credit reports, you have the right to file a dispute with the corresponding credit reporting agency. This includes any errors related to potential identity theft or fraud.

Make Sure Payments Are Being Reported Correctly

Your payment history is the most important factor in your FICO^® Score^☉ , so it's crucial that you make sure that your on-time payments are being reported accurately.

This is particularly true if you're working to build or rebuild your credit history. Even a single late payment on your credit reports can cause significant damage to your score.

Understand Where You Can Improve Your Credit

There are several general steps you can take to build a positive credit history, but the best actions for you to take will depend on your unique credit profile.

Whether you're working to rebuild a bad credit score, planning to apply for credit in the near future or you simply want to maintain a good credit score, your credit reports can show you which areas to focus on.

Learn more >> How to Build Credit: A Comprehensive Guide

How to Check Your Credit Report

There are three different ways you can check your Experian credit report, including:

• Online: Register with Experian to get free access to your FICO^® Score and Experian credit report.
• Mobile app: Download the Experian app on your Android or iOS mobile device and set up an account to check your FICO^® Score and Experian credit report on the go.
• Via mail: If you'd like a physical copy of your Experian credit report, you can download a request form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You should receive your report within 15 days.

Alternatively, you can get free weekly copies of your credit reports from the three national credit bureaus (Experian, TransUnion and Equifax) through AnnualCreditReport.com.

Here's what to look for when you review your credit reports:

• Personal information: Check to make sure your name, Social Security number, addresses and other personal details are accurate.
• Credit accounts: You should be able to see all the pertinent information for each of your credit accounts and collection accounts, also called tradelines. That includes the name of the creditor, the account status, your current balance, recent payments and other details.
• Inquiries: Hard inquiries, which typically occur when you submit an application for credit, can affect your FICO^® Score for 12 months. If you have multiple inquiries on your report, consider minimizing new credit applications. You'll also be able to see soft inquiries, though those won't affect your credit score in any way.
• Public records: If you've filed for bankruptcy, you'll be able to find details about the public record.

What to Do if There's an Error on Your Credit Report

Some credit report errors are harmless, while others could potentially wreak havoc on your credit score. Some common errors may include:

• Incorrect payment history or balance information
• Inaccurate account status—for example, a closed account is listed as open or vice versa
• A single debt listed more than once
• Inaccurate personal information, such as a Social Security number with transposed numbers
• Accounts belonging to someone else with a similar name

Regardless of the nature of the error, you have the right to dispute any inaccurate information you find with the credit bureau that's showing the error.

The process for disputing credit report details can vary by credit bureau. Here's how you can file a dispute with Experian:

1. Get started. Visit Experian's online Dispute Center to start a new dispute. Depending on your preference, you can submit a dispute online, over the phone or via mail.
2. Review your credit report. Check your credit report and identify the information you'd like to dispute. Then, select a reason for your dispute.
3. Provide more information. After selecting a reason, you can add more information to expand on your request. If you have documentation supporting your dispute, such as communication from a loan company saying you paid a loan in full, you can include it in your request.
4. Submit your request. Once you submit your request, the credit bureau will investigate it, typically resolving it within 30 days. If you've registered with Experian, you can check the status of disputes through your online account.

Does Checking Your Credit Report Hurt?

Checking your credit report won't have any impact on your credit score because it's considered a soft inquiry. Here's a quick summary of the differences between soft and hard inquiries:

• Soft inquiry: A soft inquiry occurs when you or someone else checks your credit report for reasons unrelated to an application for credit. Examples include prequalification tools, prescreened offers and landlord credit checks.
• Hard inquiry: A hard inquiry typically occurs when you submit an application for credit—though some lenders may utilize a soft inquiry instead.

Both types of inquiries remain on your credit reports for two years, and hard inquiries can negatively impact your FICO^® Score for 12 months. However, the effect is usually minor and temporary.

The Bottom Line

Checking your credit report is part of guarding your credit health. It should be done more frequently when you are preparing to use your credit to fund a large expense, but also when you know that you are at risk of fraud, such as after a data breach or when a credit, insurance or Social Security card is stolen.

At a minimum, it's a good idea to check credit reports at least once a year. In between annual peeks at your credit report, credit report monitoring can alert you to changes in your credit report. Experian's free credit monitoring can help tip you off to potential identity theft as well as help you avoid surprises when you apply for credit.