Monitoring your credit is a key part of a healthy financial life, and you don’t have to pay to do it. By regularly reviewing your credit reports and tracking your credit score, you may catch and dispute credit report errors and surface potential issues like rising debt before it becomes untenable.
Let's explore the free ways to monitor your credit, from checking your credit reports to tracking your credit score.
5 steps to monitor your credit for free
Carefully reviewing your credit report and disputing any errors, as well as tracking your credit score, can help you monitor your credit. You may also wish to freeze your credit if you don’t need to apply for new credit.
1. Request your free credit report
You can get a free copy of your credit report once per year, via phone, mail or online. However, it's worth noting that the credit bureaus are offering free weekly online reports, which can help you take a more hands-on approach. Plus, checking your credit reports does not affect your credit scores.
2. Carefully review your credit report
Your credit report contains information about your current and former credit accounts, such as loans and credit cards. Some creditors may only report to certain credit bureaus, so the information in your credit reports may vary from bureau to bureau.
When reviewing your credit report, you may look for errors across the following categories:
- Personal information: Verify that details like your name and Social Security Number are correct
- Account information: Look at your balances, payment history and account status (open or closed) to ensure everything is accurate
- Credit inquiries: Both hard and soft credit inquiries appear on your credit report; make sure you recognize each hard credit inquiry as those can impact your credit score
3. Dispute any credit report errors
If you find an error on your credit report, such as an account you don’t recognize, that may be a sign of identity theft. Fortunately, the credit bureaus are required to correct any wrong information without charge.
You’d need to dispute the error with the credit bureau that’s reporting the false information (there may be more than one). It's also best to contact the creditor that reported the information so they may correct it as well. Be prepared to provide documentation supporting your claim.
4. Track your credit score for free
Your credit score is another important aspect of credit monitoring, providing a look into your various credit accounts and how those impact your creditworthiness. Your credit score can be critical if you’re planning to apply for new credit in the near future.
Many credit card companies and lenders may offer free credit score access. For example, Citi offers qualifying cardmembers access to their FICO scores for free.
