While credit bureaus are typically pretty thorough in making sure consumers have clean and organized credit files, mistakes can happen. You might find that your credit file is fragmented, duplicated, or mixed up with someone else’s credit file.
If you aren’t checking your credit report regularly, this could become a serious problem. However, if you are quick to catch these mistakes, you could end up avoiding one of these devastating downsides.
Lowered Credit Scores
If you have large periods of your credit score missing, meaning you have a fragmented credit score, then your credit score might look more sparse to the credit bureau. Not only will this stop you from reaching a higher credit score, but it can also stop you from having the ability to apply for large loans or any type of loan at a reasonable rate.
A company will often verify your information to prove that you are the person you claim you are whenever you open a brand new account. The last thing you want is for there to be missing information on your credit report, as this could signal to a company that you are an identity thief trying to use someone else’s information for your gain.
In the end, having missing or fragmented information could restrict you from doing certain types of business or acquiring loans.
If you have your credit score mixed up with someone because somebody is trying to steal your identity, this could mean big legal trouble in your future. If the person who stole your identity gets in trouble, law enforcement could have a hard time separating that person from you. You might end up being held accountable for something that you never did.
You Should Set Up Credit Report Alerts
One of the best ways to protect yourself from having these things happen is by setting up alerts. Having alerts set up can protect you from identity theft in the long run. There are several free credit report apps out there that can do this. Your bank might even have some notifications available.
When setting up alerts, you can see when some of the following things occur:
- New lines of credit
- Change of address
- Change of employer
- Change of name
- Credit score changes
Check Your Credit Score and Avoid Trouble
We can’t stress enough how important it is to keep an eye on your credit score. Knowing about changes in your credit score can keep you on track to better credit and keep you from getting in trouble in the future.
If you’re looking to take your credit to the next level and reach your financial goals, you might consider using tradelines.
Here at Boost Credit 101, we work with people from all walks of life who are looking to purchase tradelines and potentially increase their credit scores. Give us a call if you’re interested in what tradelines can do for your credit score.