No Plans to Use Your Credit – 3 Reasons Why You Still Need to Check it

During trying economic times, like many of us are facing during this pandemic, one might just assume they need not waste time checking up on their credit.  Maybe you are already in a house or apartment for a while, not in the market for a car anymore, or just believe that now is not the time to open more store and credit cards if the job market is shaky.  This would certainly lead one to believe that there is no reason to continue to monitor one’s credit standing – at least not for the time being.  However, that would be a mistaken assumption.  There is still good reason to continue to monitor your credit, even when there is no intention on using it in the very near future.  Here are 3 main reasons why you should continue to check on your credit report.

  1. Your Creditors Are Checking, So Should You.  Even though you may believe you are “locked in” with some of your creditors, that’s not entirely true.  While your installment agreements (home and auto payments) and rental lease agreements cannot be altered, any revolving creditor (credit cards and store cards) certainly can change the terms of your credit at any time.  At any time you have an ongoing relationship with a creditor, they have the right to check your credit to make sure you are able to keep up with the terms of your obligation.  If they see issues with your credit, they may reduce your credit line.
  2. Identity Theft and Unauthorized Use of Credit.  Unless you are checking in on your credit from time to time, you may not catch an identity thief lurking.  By checking your credit report to see that only those creditors to which you applied have performed inquiries, you can stop accounts from being opened in you name.  You should always check and make sure the accounts being reported in your name are actually yours, the inquiries performed on your credit were authorized by you, and the addresses and contact information that appears on your report is all true and accurate.  Ignoring your credit allows thieves to wreak havoc.
  3. Accuracy and Updates.  Sometimes when an account is paid and closed, or maybe a vehicle is turned in at the end of a lease, the creditor discontinues reporting before making its final update.  We will never know whether our creditors have the correct and up to date information about our account histories unless we check in on how they are reporting.  Creditors can make errors, and some of them small and innocent.  However, some can get in the way of future credit opportunities.

Monitoring your credit is essential even when you are not planning on using your credit anytime soon.  It doesn’t cost much and it doesn’t take long.  If you find errors on your credit report, SmithMarco, P.C. offers a free case review.  Call or Click NOW!

Larry Smith
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