Your credit report is more than just a list of numbers—it’s a snapshot of your financial history and a key part of your financial future. Whether you’re applying for a loan, renting an apartment, or even interviewing for a job, your credit report can influence how others see your financial reliability. That’s why keeping a regular eye on your credit report is a smart financial strategy.
Why Regular Credit Monitoring Is Important
Your credit report contains several key pieces of information, including a list of your current and closed accounts, your payment history, and any public financial records like bankruptcies. It also shows a record of your credit inquiries, which typically occur when a lender checks your credit when you apply for a new loan or credit card. It is important to note that your credit report does not include your credit score, which is a numerical representation of your creditworthiness. Keeping tabs on your credit report helps you stay in control of your financial health. Your credit report can help you:
While there are plenty of expensive credit monitoring services out there, you don’t need to pay a premium to keep tabs on your credit. Here are some ways you can monitor your credit without breaking the bank:
This is one of the most common questions people have when it comes to checking their own credit, and the good news is that no, checking your own credit report or viewing your credit score will not hurt your credit score. Whether you’re reviewing your credit report through AnnualCreditReport.com, using a free service like CreditKarma, or taking advantage of your bank’s credit monitoring tools, these actions are considered “soft inquiries” and do not affect your credit score in any way. Soft inquiries are different from “hard inquiries”, which occur when lenders check your credit as part of a loan or credit card application. Hard inquiries can temporarily lower your credit score by a few points, but soft inquries—like those you initiate when you check your own credit—are purely informational and have zero impact on your credit health.
Bottom Line: Checking Your Credit is Smart, and Doesn’t Need to Break the Bank
Checking your own credit report and credit score is a smart habit that puts you in control of your financial future, and it doesn’t have to be complicated or expensive. With free weekly access to your credit reports and no-cost tools available for monitoring and improving your credit, it’s easier than ever to protect your financial health. If you’re looking for a simple, secure way to monitor your credit and gain anytime access to your credit score, consider opening a BankFive account today.
Why Regular Credit Monitoring Is Important
Your credit report contains several key pieces of information, including a list of your current and closed accounts, your payment history, and any public financial records like bankruptcies. It also shows a record of your credit inquiries, which typically occur when a lender checks your credit when you apply for a new loan or credit card. It is important to note that your credit report does not include your credit score, which is a numerical representation of your creditworthiness. Keeping tabs on your credit report helps you stay in control of your financial health. Your credit report can help you:
- Spot Fraud and Identity Theft Early. If someone steals your identity and fraudulently opens a credit card or loan in your name, it could have a major negative impact on your credit. By checking your credit report regularly, you can catch suspicious activity and report it before it causes significant damage to your credit score.
- Fix Reporting Errors. Mistakes can happen. Maybe one of your credit card payments was marked late when it wasn’t, or an account you closed years ago is still showing as active. Errors in your credit report can potentially hurt your credit score, but if you catch them early you can dispute them and get them corrected.
- Prepare for Big Financial Moves. Planning to buy a car, apply for a mortgage, or get a new credit card? Knowing your credit status ahead of time helps you avoid surprise denials and gives you time to improve your score if needed.
While there are plenty of expensive credit monitoring services out there, you don’t need to pay a premium to keep tabs on your credit. Here are some ways you can monitor your credit without breaking the bank:
- Manually Check Your Credit Reports Regularly. One of the simplest and most effective ways to monitor your credit for free is by manually reviewing your credit reports on a regular basis. At a minimum, you should check your reports at least once a year, but many experts recommend checking them more frequently—either monthly or quarterly. Under a permanent update to the Fair Credit Reporting Act, AnnualCreditReport.com now allows free weekly access to your reports from all three of the major credit reporting bureaus: Equifax, Experian, and TransUnion. It’s important to note that while these reports are free, they do not include your credit score.
- Use Free Credit Monitoring Tools. While it’s important to thoroughly review your credit reports at least annually, you can utilize free credit monitoring tools to stay on top of any changes to your credit activity. Many banks now offer credit monitoring tools at no cost, and there are other free credit monitoring services like CreditKarma out there as well. At BankFive, we offer our customers a built-in credit monitoring tool called SavvyMoney as part of our Online Banking platform. This service can provide alerts to significant changes in your credit report and also provides valuable insight into what’s impacting your credit score and how to improve it. What’s more, these types of credit monitoring tools typically provide access to your credit score, making them a great addition to manual credit checks.
This is one of the most common questions people have when it comes to checking their own credit, and the good news is that no, checking your own credit report or viewing your credit score will not hurt your credit score. Whether you’re reviewing your credit report through AnnualCreditReport.com, using a free service like CreditKarma, or taking advantage of your bank’s credit monitoring tools, these actions are considered “soft inquiries” and do not affect your credit score in any way. Soft inquiries are different from “hard inquiries”, which occur when lenders check your credit as part of a loan or credit card application. Hard inquiries can temporarily lower your credit score by a few points, but soft inquries—like those you initiate when you check your own credit—are purely informational and have zero impact on your credit health.
Bottom Line: Checking Your Credit is Smart, and Doesn’t Need to Break the Bank
Checking your own credit report and credit score is a smart habit that puts you in control of your financial future, and it doesn’t have to be complicated or expensive. With free weekly access to your credit reports and no-cost tools available for monitoring and improving your credit, it’s easier than ever to protect your financial health. If you’re looking for a simple, secure way to monitor your credit and gain anytime access to your credit score, consider opening a BankFive account today.