It’s easy to check your credit score, especially using a variety of online tools, but knowing what to do if you find something wrong on your credit report requires a bit of legwork that is worth the effort to help you protect your financial record.

First, by checking all three of the reporting agencies, you may find an error on just one.  For example, one credit agency received an incorrect report of a credit union member as deceased, which certainly required a little effort to correct a credit report, but obviously made a big impact on a credit report.  Look at all three agencies: Equifax, Experian, and Trans Union.

Second, know what your score means.  Congratulations, your credit score is 715, but if you can improve it to 735 or 750, that can give you better options when it comes time to borrow.  Your credit may be ideal for an auto loan, but if you’re planning for a 30-year mortgage, a little difference could mean a lot of savings in the long run.  If you want to know how you can improve your score so you can plan for better interest rates of a larger line of credit, be sure to speak with a Dakota West loan officer at your local branch.

Third, if you’re young, start building credit sooner rather than later.  If you have well-established credit and most of your debits are paid down, allow yourself to maintain lines of credit, even if you keep the balance paid off, to keep the credit rating you’ve worked hard to earn.  Establishing credit and maintaining your credit go hand in hand to develop a long-term credit score that helps you reach your financial goals.