Want Better Credit? Try This One Super Easy Move

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In 2023, the average American had a credit score of 715, according to Experian, one of the three major credit reporting bureaus. A score of 715 falls into the "good" category, but credit scores can go up to 850. But once your score reaches 800, it's considered "exceptional."

With a credit score in that category, it can become a lot easier to qualify for new loans or credit cards . And when you sign a loan, whether it's an auto loan or a mortgage , you're likely to get a better interest rate with a higher credit score, leading to more affordable monthly payments.

If your credit score could use work, you can take steps to boost it. You can pay all of your bills on time and cut your spending to free up cash to chip away at existing credit card balances. The lower your balances, the more your credit score can improve.

But there may be an even easier way to give your credit score a boost. A move that takes five minutes or less could be your ticket to a higher credit score, and way more borrowing opportunities.

When's the last time you checked your credit report?

Reading through your credit report may not be quite as fun as scrolling through Facebook, but it might take a lot less time and do you a world of good.

Your credit report is a snapshot of your borrowing history. It includes your open loans and credit card accounts, your payment history, and recent hard inquiries, which happen when you apply for credit.

You need to check your credit report because a mistake could drag your credit score down. And those mistakes are all too common. You may be surprised to learn that 20% of consumers have an error on their credit reports, according to the Federal Trade Commission.

Let's say you check your credit report and see several late or missed payments on a loan you paid on time. That incorrect information could drag your credit score down by quite a lot. That's the sort of mistake you'd want to correct -- first, by contacting the bureau that reported the error and then, if needed, contacting your loan servicer to sort things out.

You may also notice open accounts on your credit report that you never applied for. Those could be a mistake -- or they could be actual accounts that a criminal opened in your name.

That's an important situation to address, too. Again, your first move here would be to contact the reporting bureau to see where it got the information. From there, you might have to reach out to the companies behind those accounts and report them as fraudulent.

How often should you check your credit report?

You're entitled to a free copy of your credit report every week from each reporting bureau -- Experian, Equifax, and TransUnion. But that doesn't mean you need to check your credit report that often.

You may want to check your credit report about once a month, while rotating between the different bureaus. For example, you could check your Experian report in January, your Equifax report in February, your TransUnion report in March, and so forth. Or, you may decide to check all three reports at once every three months.

It's important to look at what each credit bureau has on record for you, because that information can differ from one bureau to another. But all told, checking your credit report should take five minutes or less. Go to AnnualCreditReport.com for yours.

Granted, if there's an issue to follow up on, you'll probably have to spend more time than that. But correcting a credit report mistake is still one of the easiest things you can do to give your credit score a lift. It's worth making that effort, especially if you've been struggling to raise your number.

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