3 Reasons You Shouldn’t Be Afraid to Check Your Credit

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By: Matt Diehl

Oct 2, 2018

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3 minute read

Summary

Does hearing the word “credit” give you the chills? Here are some ways that checking your credit can be more useful, and less scary, than you think.

In this article:

Does hearing the word “credit” give you the chills? While these jitters could make you want to avoid it completely, building a good credit score can be essential to a secure and healthy financial life. Here are some ways that checking your credit can be more useful, and less scary, than you think:

1. It can help you spot identity theft

There was a record high 16.7 million victims of identity fraud in 2017. Credit card fraud ranked second highest among all types of identity theft, so keeping an eye on your credit report could help you spot a problem right when it starts.1 Issues to look out for include:2

  • a new loan or credit card account opened in your name
  • a public record showing you’ve filed for bankruptcy
  • a legal judgment against you
  • your credit limits have changed

If you think you’ve been a victim of identity theft, go to www.identitytheft.gov and file a claim. They have information and recovery plans for more than 30 types of identity theft, including credit card fraud.

2. You can make sure your personal information is correct

Checking your credit score also lets you double-check that your personal information is accurate. If your information is incorrect or mixed with someone else’s, it could create issues for everyone involved. Make sure the following identification information is correct each time you check your credit:

  • Full name, including middle name and suffix, such as Jr., Sr., II, III
  • Date of birth
  • Social Security number
  • Complete address, including apartment number if applicable

If you find any mistakes, follow these steps to dispute the errors.

3. It can help you plan ahead and achieve goals

Maintaining a strong credit score can help your financial future in several ways. Those with higher credit scores tend to get more favorable terms on loans and mortgages and even get cheaper auto insurance rates.3 Here are some potential goals you could set and achieve:

For more info, check out all our blogs on credit and credit management.

Not as spooky as you thought

Credit scores can be intimidating and even a little mysterious. However, once you begin to understand and use them to your advantage, you’ll wonder why you were ever scared in the first place.


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1. Insurance Information Institute. “Facts + Statistics: Identity theft and cybercrime.” Iii.org. https://www.iii.org/fact-statistic/facts-statistics-identity-theft-and-cybercrime (accessed August 27, 2018.)
2. Federal Trade Commission. “Identity Theft Protection Services.” Consumer.ftc.gov. https://www.consumer.ftc.gov/articles/0235-identity-theft-protection-services (accessed August 27, 2018).
3. Consumerreports.org. “The Secret Score Behind Your Rates.” Consumerreports.org. https://www.consumerreports.org/cro/car-insurance/credit-scores-affect-auto-insurance-rates/index.htm (accessed August 27, 2018).

This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.

Frequently asked questions

We work with a wide range of credit scores and take your whole financial picture into account to find a loan that’s right for you.

If you’re concerned about whether or not you can get a personal loan, using collateral may improve your chances of getting approved. It can even give you access to lower rates, lower payments or more money. And once approved, it can also be a great tool to help you build credit. It’s important to note: if a borrower defaults on a secured loan, the lender has the right to take the collateral.

Still have questions about how to buy a car with a loan from OneMain? We can help. Just call us at 844-859-5091.