One-Third of Americans Have Never Checked Their Credit Report

As the annual Financial Literacy Month in the United States got underway on April 1st, the financial literacy industry is buzzing over the report that one-third of Americans have never checked their credit report or score.  In addition, another twenty-five percent have not checked their report or score in more than a year, according to a report commissioned by TransUnion.

Given the ongoing economic and market uncertainties, combined with a fragile job market in the U.S., many financial education proponents are promulgating that this is an important time for individuals to stay on top of their financial situations and among the best ways to do that is to review personal credit reports and scores, as well as to be proactive in fixing issues with and strengthening one’s credit report to the maximum extent possible.

Financial literacy plays a key role in the credit report process since individuals who don’t know about credit reports or how to access them will not be able to take advantage of this very important financial wellness tool.  The following are some key steps that should be taken to with respect to using credit reports to enhance personal financial success:

1.  Get Your Credit Report and Score

There is no substitute to education.  Consumers should order their credit reports and analyze them for any incorrect data or information that the individual does not recognize or understand.

2.  Fix Credit Report Issues

Consumers should fix any inaccuracies and get information about anything in their credit reports that they do not understand.  One avenue to do this is to directly contact the creditors listed in the credit report.  Another strategy would be to contact the credit reporting company for help in fixing the credit report.

3.  Understand Credit Weaknesses

The credit report is an excellent tool for consumers to understand their credit weaknesses, which enables individuals to develop a strategy to strengthen those areas and to better manage the accounts and behaviors that are dragging down the credit score.  Based on this understanding, consumers can establish credit management goals for the months and years ahead.

4.  Regular Credit Report Reviews

Following the payoff of any debts, consumers should check their credit reports to ensure that those payoffs are reflected properly.  This will help strengthen credit scores.

5.  Credit Monitoring

Given the widespread incidence of credit card fraud and other improper uses of personal identification information, it is exceedingly important for consumers to continuously monitor their credit.  Enrolling in a credit monitoring program that alerts consumers of certain changes in their reports also helps to ensure long-term credit success.

The above list is not intended to be exhaustive, but if consumers do proceed with these credit-related actions, then they will be well on their way to higher credit scores, broader access to credit, and stronger overall financial fitness.