4 important things to note when checking your credit report

Knowing how to check credit score information and interpret the credit report are very important skills to have. It provides valuable information about your credit profile and helps you better understand your score. Fortunately, the provisions for checking credit scores online have made things much easier today. In the past, your credit report was only viewed when you had credit, which made it difficult to monitor. This is no longer a limitation and you should use these online services to ensure that your finances remain healthy.

However, despite the ease of access, many will only check credit score information when reviewing the report. This is not enough because the credit report has several other crucial information fields. To find out what to look for and make sure nothing gets overlooked, take a look at 4 things to note when checking your credit report. Also, find out about how to improve target score immediately.

Potential signs of fraud or identity theft

Apart from your credit score, the credit report has other sections such as account information, personal information, employment information, and inquiry information. It is important to review them because they help you identify cases of fraud or identity theft. One of the easiest ways to spot it is to check the inquiries section. This section shows you all inquiries that have been made to lenders and credit issuers in the past.

Get to know these financial institutions and see if you have done business with them. Serious inquiries on your credit report only appear when a lender is evaluating your profile to make a loan decision. So, if you haven’t applied for a loan or credit card from a certain company and it shows up in your inquiries section, you may be a victim of fraud. This could suggest that an attempt has been made to open a credit account in your name. Note that you may also find inquiries from the lenders listed in this section. These are normally carried out during the evaluation of your profile for a pre-approved offer. These are not as alarming, but you should also pay attention to them.

Existing Open Credit Accounts

Your credit report will contain all of your current open accounts listed in the account information section. Go through this list to get a better idea of ​​your creditworthiness and debt. Open accounts will contain all details related to any outstanding debt you may have. Additionally, you can assess your credit composition and make changes accordingly. If you have more unsecured credit than secured credit, it might be time to start balancing that out.

Having too much unsecured credit will be viewed negatively by lenders. In addition, you must verify that all accounts opened belong to you in this section. If there are any accounts you don’t recognize, you should start the dispute process immediately.

Inaccurate information

It’s very common to find errors in your credit report, and these can range from a misspelled name to an incorrectly reported credit account. The impact of these errors varies as some discrepancies can reduce your score. For example, you should verify that all of your open credit accounts are marked as open, especially if there is an outstanding balance. Open accounts marked as closed with an outstanding balance will hurt your credit score and cause it to drop.

Other common errors are discrepancies in your address or employer information. While these don’t directly impact your score, they can change how lenders view your profile. In some cases, it may even affect your eligibility for a loan.

The status of your accounts

When checking credit score information on the report, be sure to note the status of your accounts. Accounts marked as “charged off”, “lawsuited”, or “settled” negatively affect your credit profile. If these tags appear to be assigned incorrectly, dispute them and have them corrected immediately.

It is important to know how to check credit score and credit report information and how to interpret the data. Don’t just check the score and move on. This can lead to issues that may be difficult to resolve. For this reason, you should get into the habit of checking your credit report once every 3 months. These tips should help you do just that and ensure you understand your profile better. You can check credit score for free and view your report on the Bajaj Finserv website.

It is a very simple process, and you can complete it in minutes. All you have to do is fill in the simple application form with basic personal information, enter the OTP secret shared with you, and upload your credit report. Using this service has no negative impact on your CIBIL score and you can use it to monitor your credit profile whenever you need.

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