Checking your credit report may not seem like a necessity, but here’s why you should take the time to do it.

In today’s world, it seems like our to-do lists as adults are never-ending, so the thought of adding one more thing to the list feels daunting (especially if it’s money related).

It’s important to note though, that just as we go to the doctor for an annual physical to make sure that we maintain good physical health, it’s vital to do a financial checkup to make sure that we have ideal financial health.

One of the best ways to achieve that is by checking your credit report annually. Once a year, you can go to www.annualcreditreport.com to see your report. Since you’re only allowed to check it once a year, it’s important that you save it as a PDF file so that you have it for future reference.

(As an aside, it’s important to note that most major credit reporting companies are allowing consumers to check their credit report on a weekly basis during COVID-19 to prevent fraud and to assess their financial situation.)

Here are four good reasons to check it:

1.) To be on the lookout for identity theft.

In a matter of minutes, someone can turn your whole world upside down by stealing your credit card number, social security number, or routing and checking account number. Hacking into online accounts and stealing mail are the most common ways that financial information is stolen.

One way to know if this has happened is to check your credit scores regularly. If they have dropped significantly, it’s important to look at your detailed report to see if credit cards or even mortgages have been open under your name.

If that’s the case, it’s imperative to immediately call the those companies to alert them of fraud. One way to catch this right away is to hire a company that specializes in detecting identity theft.