Whether you are 18 or 108 years old, you should make it a habit to constantly monitor your credit. How often should you check your credit score? at least every month.
We are going to cover the reasons you need to keep tabs on your credit score and also how you can do everything for free; who doesn’t like saving money, especially with the cost of living soaring out of control for most Canadians.
Identify Theft is a Real Issue
While you may never suffer the pain and hardship of having your identity stolen, there is a projection that at least 20% of the Canadian population will experience some form of identity theft in their lifetime.
Identity Theft rate over the years. Source: Statista
This may not seem like a big deal, but credit touches pretty much every facet of your life.
Try to get a high-level job or rent an apartment if you have bad credit because someone stole your identity!
You will face an uphill challenge just being able to regain control of your identity. If you actively monitor your credit score and report, then you can quickly identify any anomalies and nip them in the bud before it does significant damage to your credit score and quality of life.
Sign up directly with TransUnion and Equifax
While there are third-party credit monitoring service providers, you should sign up with TransUnion and Equifax directly.
By signing up directly with these credit reporting agencies, you will have direct access to your credit score and report for free.
If you are using a third-party provider, your personal information could end up in the hands of criminals!
Both TransUnion and Equifax offer a paid identity theft monitoring service, but if you check your account often, you should be able to get by without the paid service.
What to do if there are mistakes in your credit report
You need to take action and not procrastinate; the credit reporting agencies in Canada must go through a massive amount of red tape in order to ensure they are in compliance.
So, when there is an error in a credit report, the only way to have the issue resolved is by going through the appropriate dispute channels posted on the respective website.
What you need to do is note the account on your credit report and state clearly, in plain English, why the account is not accurate.
The credit reporting agency will then investigate and come back with its findings.
Do not try to use this process to “game the credit reporting system” into getting a higher credit score.
This is a tactic used by so-called credit repair firms in the USA, but in Canada, it doesn’t work, so don’t waste your money on these gimmicks.
By keeping tabs on your credit score, you are less likely to suffer from identity theft and can live your best life.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!