3 Things to Look Out for on Your Credit Report in January

The holiday season is full of celebrations, stress, time with family, and lots of shopping. When it’s over, it can feel like you need a break just to recover from it all.

Here are a few key areas to review on your credit report in January.

1. Credit Utilization

Credit utilization is the amount of your available credit that you’re currently using. This is especially important to look at after the holidays, when many purchases end up on credit cards. You don’t want to be surprised by maxed-out cards or high balances.

Your credit utilization also affects your credit score. If you’re using more than 30% of your available credit, your score may dip. The good news is this is usually temporary. As you pay balances down, your score can bounce back.

If you’re planning to apply for a loan soon, it may be a good idea to make larger payments—if you’re able—to lower your utilization first.

To calculate your total credit utilization, add up the credit limits on all your credit cards and lines of credit, like HELOCs. Then add up how much you owe on each. Divide what you owe by your total credit limit, then multiply by 100 to get your percentage.

2. Missed Payments

The holidays can be busy, and sometimes payments get missed. Take a moment to check that none of your accounts show payments that are 30 days late or more.

The sooner you fix any missed payments, the better it is for your credit score—and your overall financial health.

3. Fraud

Unfortunately, the holidays are a popular time for scams. Checking your credit report can help you catch signs of fraud early.

Here are three places to look closely:

1. Your personal information: If your report suddenly lists a new address or employer you don’t recognize, it could be a red flag.
2. Your open accounts: Make sure every credit card and loan listed belongs to you. If you see something you don’t recognize, act quickly to report it.
3. Hard inquiries: Your credit report shows when your credit has been checked. Soft inquiries are common and usually harmless. Hard inquiries typically happen when you apply for a loan or credit card. If you see a hard inquiry you don’t recognize, it could mean someone tried to open credit in your name.

Monitor Your Credit With Metco and SavvyMoney

Metco Credit Union members can use SavvyMoney to stay on top of their credit. SavvyMoney gives you access to your credit score, full credit report, monitoring alerts, and helpful financial tips—all in one place.

To learn more about SavvyMoney and other services Metco offers, contact us today.