It's Not Too Late to Make This Important Financial Move in 2023

At this point, we only have a couple of weeks left in 2023. And while you may be focused on the financial moves you want to make in the new year, there's one important move you still have time to make this December -- and it could set you up for a lot of success in 2024.

Check your credit report

Reading your credit report may not be quite as much fun as reading your favorite blog or magazine. But it's an important read nonetheless.

Your credit report is a snapshot of your borrowing history. Paying attention to your credit report could help you take steps to improve your credit score in the new year. The higher that score, the easier it becomes to not only get approved for a loan, but at a more favorable rate.

How to access your credit report

It used to be that you could only access your credit report for free once a year from each of the three credit reporting bureaus -- Experian, Equifax, and TransUnion. During the pandemic, credit reports became accessible for free on a weekly basis due to an uptick in financial fraud.

After extending that provision several times, the change eventually became permanent. So all you have to do is go to AnnualCreditReport.com and request your free report there.

Things to pay attention to

Your credit report will give you a rundown of your borrowing history and open accounts. Some of the things you'll want to look for are your:

Existing credit cards, loans, and lines of credit

Make sure you recognize each one that's listed on your credit report. Any account you don't recognize is one you'll need to investigate. Perhaps a loan or credit card was opened fraudulently in your name. Reach out to the issuing party as a starting point, and from there, loop in the reporting bureau. If the issuing party has no record of an account in your name, get in touch with the bureau listing that account and ask to have it removed.

Your current loans and credit card balances

If you see that your credit card balances are on the high side, make a plan to whittle them down. Even if you're making your minimum payments on your credit cards on time every month, you could still damage your credit score by using too much of your available credit at once. As for installment loan balances, you don't necessarily have to worry about those so much if you're paying them on time, but it's still a good thing to know what you owe.

Your payment history

Pay attention to delinquencies, like late or missing payments. If you see a delinquency that's inaccurate, follow up. It could be that you paid your mortgage a few months ago but somehow that payment wasn't properly recorded. Correcting an error like that could boost your credit score.

All told, you generally don't need to check your credit report every week. But if you haven't yet given it a look in 2023, carve out some time before the end of the year to read through it thoroughly. That way, if you notice items you need to address or work on, you can do so right away and set yourself up for a successful 2024.