Credit Tip: How to Review Your Credit Report Before a Big Purchase

Before you apply for a mortgage, car loan, or even a new apartment, it's smart to check your credit report. Think of it as giving your finances a quick health check before making a major move. Here’s how to do it right:

Get Your Free Credit Reports

You’re entitled to one free credit report per year from each of the three major bureaus: Equifax, Experian, and TransUnion. Grab yours at AnnualCreditReport.com. It’s the only official site authorized by federal law.

Tip: Right now, you can get free weekly reports from all three bureaus through the site.

Review for Accuracy

Once you’ve got your reports in hand (or on screen), go line-by-line. Look for:

• Misspelled names or wrong addresses

• Accounts you don’t recognize

• Incorrect balances or payment histories

• Old collections that should’ve dropped off

Mistakes are more common than you think, and they can drag your score down.

Dispute Errors Immediately

If you see something off, don’t wait. Each bureau has an online dispute process, and they’re required to investigate within 30 days.

📌 Be sure to document everything and keep copies of any communication.

Look at Your Credit Utilization

This is the ratio of your credit card balances to your limits. Aim to stay under 30%—lower is even better. If your utilization is high, pay down balances before applying for credit.

Watch for Red Flags

Lenders look for signs of risk. These might include:

• Recent late payments

• High revolving debt

• Too many recent inquiries

If any of these apply, you may want to hold off on that big purchase—or work on strengthening your credit first.

6. Know Your Credit Score (and What It Means)

Your credit report doesn’t include your score, but you can often see it through your bank or a free service like Credit Karma or Experian. A good score (usually 670+) puts you in a stronger position to negotiate better rates and terms.

Checking your credit report ahead of a major purchase can save you money and stress. Think of it as being financially proactive. You’re not just buying a car or home—you’re buying peace of mind.

Want more tips on financial wellness, life hacks, and leveling up?

Subscribe to our newsletter and follow us for more game-changing insights.