Whether a person's credit is good or bad, monitoring one's credit rating is something very important that people should consider doing on a regular basis. There are many thing that can positively or negatively affect a person's credit rating and it is important to keep track of where a person's credit score falls. Credit is essential in our society. A person needs credit to purchase vehicles, to purchase homes, to get personal loans, credit cards, and more and more often, even apply for jobs.
Not knowing what's on a credit report can be dangerous. Running a credit report shows a person a few basic things. Most importantly, there is a credit score. This score is a reflection of how banks look at a person as a debtor. The higher the number, the lower the interest rate a person can get. Also, a person needs to pay attention what's on a credit score, and to make sure that the companies they deal with (credit card companies, loan companies, etc) are accurately reporting information. Next, a credit report can show a person recent inquiries, it will show them who has checked their credit lately.
All of these things need to be monitored because even if a person is diligent in maintaining a good credit rating, a person can potentially have their identity stolen and not even realize it until it is too late. Monitoring revolving accounts is one way to do this. If a person sees an account he or she is not familiar with, it should be disputed immediately as their information may be compromised. In addition, a person should watch for credit inquiries they do not recognize, as these can be indicators someone is fraudulently using a person's information to open accounts.