When it comes to credit, one of the most common pieces of advice centers around the idea of proactive protection – adapting a proactive approach in checking, fixing and maintaining your good credit. This article from Bankrate explains the importance of that concept, and offers an interesting look at who checks their credit reports most often.
Checking up on your credit is part of a smart financial plan. Not only can you spot and correct errors, but knowing your credit score will help you to take steps to raise it, if necessary, when it comes time to find the best interest rate on a loan.
So you might assume that it would be the people with credit problems who would look up their score most often.
In fact, a recent Bankrate Money Pulse survey finds that 62% of those earning $75,000 a year or more viewed their credit score in the last year, versus only 34% of those with an annual salary of less than $30,000.
In addition, 59% of the high-income earners say they check their credit report one or more times a year, compared with 38% of those in the lower income brackets.
Joe Heider, financial adviser and president of Cirrus Wealth Management in Cleveland, Ohio, says it makes sense that high-earners check their credit more often. “The affluent are more likely to be purchasing higher-ticket items – more expensive homes, cars – where their credit score comes into play,” he says.
Aside from the impact a credit score has on the cost of borrowing, a credit report will also reveal outstanding debt. Therefore, everyone should check their report to ensure there are no errors or evidence of identity theft, Heider adds.
