As you move into a new month, it’s a great time to get a better handle on your financial situations. Do you really know where you stand in the eyes of current and potential creditors? If you were to apply for a new credit card tomorrow, do you know if you would be approved? One way to get a better idea of your status is to review your credit file regularly so you can monitor changes to your credit history. When was the last time you took a look at your credit file?

Let’s take a look at why it’s important to regularly check your credit history, how often you should get a copy of your credit file, specific times when it’s even more important to check, and the kinds of errors you should be looking for when you do.

Why Should You Check Your Credit File Regularly?

Information in your credit file is continuously updated based on your financial history. This is the information potential lenders see about you when deciding if you’re creditworthy or not. And if you’re going to have other people reviewing this information, you should certainly stay on top of it as well. After all, if you don’t know what’s in your credit file from month-to-month or year-to-year, how are you going to take care of potential errors in a timely manner so you do get approved for credit when you need it?

How Often Should You Check Your Credit File?

While instant online access to your credit file can cost you money, you have an option to wait a little longer and get a free copy with both major credit reporting agencies. And with free copies of your credit file available when you request them, there’s no good excuse for not checking your credit history frequently. At least once a month can be a good idea if you have an active credit-based financial life.

By monitoring changes regularly, you can make sure cleared up debts are updated promptly and that any errors which might appear are fixed just as fast. There’s another time when you should make a special effort to get your credit file though — just before applying for new credit. This way you’ll always have the most up to date information that the lender will have at its own fingertips.

Credit File Errors to Look Out For

Errors in your credit file can stop you from being approved for credit cards or other types of credit. Two of the biggest errors to keep an eye out for are outdated income or employer information and old negative repayment statuses that haven’t been updated. If you’ve closed accounts and paid them off, you’ll also want to make sure they’re no longer listed as current credit providers. Otherwise new lenders might assume you already have too much access to available credit.

Credit files can be helpful tools in monitoring your own financial health. But a rare or occasional check-up isn’t enough. Make regular credit file monitoring a part of your monthly financial habits, and you won’t have to be worried about unpleasant surprises the next time you apply for credit.