How often should you review your credit report for accuracy?

Reviewing your credit report for accuracy on an annual basis is considered a best practice for several reasons. First, credit reports can contain errors that may negatively impact your credit score, and identifying these inaccuracies is essential for maintaining good financial health. By reviewing your report once a year, you can ensure that any mistakes, such as incorrect account information or fraudulent accounts, are addressed in a timely manner.

Moreover, the Fair Credit Reporting Act entitles you to one free credit report per year from each of the three major credit reporting agencies (Equifax, Experian, and TransUnion). Taking advantage of this allows you to check your credit history comprehensively and understand how lenders see you.

Although reviewing your credit report more frequently—such as monthly or quarterly—can provide a more immediate sense of your credit status, it may not be necessary for everyone. Many individuals find that an annual review is sufficient to keep track of their credit health and correct any errors found. Regularly monitoring your credit report can also help you stay on top of your financial affairs without being overwhelmed by the constant need to check for inaccuracies.