2020 is here - a new year and a new decade. If you are like most Americans you have probably established a few New Year’s resolutions. If 2020 is like 2019 (and many years before that), you are likely resolving to get in shape, lose weight, eat healthier, improve your approach to self-care, learn a new skill, get a new job, or manage your money better. And managing your money better is a critical lifestyle change that will help you become financially healthier (and mentally healthier too).
One of the best ways to manage your money better is to ensure that you have a solid credit rating and that you are on top of the information that the credit bureaus (Experian, Equifax, and TransUnion) have about you. Any financial advisor will tell you that you should pull your credit report at least once per year (it’s free to do so one time per year as part of the Fair Credit Reporting Act).
Those who are diligent about pulling their credit report once per year experience several benefits. But most importantly, you will benefit from the following:
If you haven’t done so already, make an annual credit report pull part of your annual checklist that gets marked off the list in January of each year. Just like changing the batteries in your smoke detectors at the beginning of each year, starting the year with knowledge about your credit rating situation will set you up for better overall health.
All three credit bureaus are responsible to provide you with a free annual report should you request it. You can also pull a consolidated report directly from FICO or by going directly to www.annualcreditreport.com.
Stay tuned for our next blog: Setting a Budget and Living Within Your Means
As part of your annual checklist, it is important to review your budget and spending habits on an annual basis. Doing this as part of the new year will help set you up for success both for the coming year ahead and well into the future.