Is It Really Necessary to Monitor Credit Score?

You must make "monitor credit score‚" your personal mantra in order to have an up-to-date understanding of the kind of information lenders and credit bureaus see when they evaluate your applications for loans or new accounts. However‚ watching your credit score habitually like a clock doesn't necessarily guarantee you anything other than stress. While it's good to be informed and knowledgeable‚ especially regarding the health of your finances‚ credit monitoring like a hawk could really just be an exercise in futility opposed to a proactive measure.

Why you should monitor credit score

Because your credit score is such an important bit of information‚ you don't want to be in the dark when it comes to how it is faring. This is why you should‚ at the very least‚ take advantage of viewing your FICO score on any of the three credit reports offered by the three credit bureaus on an annual basis. For instance‚ if your credit score experiences a sudden drop‚ even though you haven't missed a payment or made any abnormal purchases‚ this could be a sign of identity theft.

Don't take it to the extreme

You may consistently request a new report so as to monitor credit score‚ however‚ this may look suspicious to potential lenders. Your credit score won't change overnight if a thief gets a hold of it or a bill goes unpaid‚ so there is no reason to take this approach to the extreme.

If you want to be sure that your financial health isn't compromised‚ consider looking into a credit monitoring program to keep an eye on your report for you. Should your score take a hit or there appears to be suspicious‚ unauthorized behavior taking place in your name that may be hurting your credit‚ prompting you to take the necessary steps to halt potential theft in its tracks.