1- Your report is pulled by the creditor every time that you apply for any form of credit like credit cards, home loans, personal loans, auto loans, student loans etc. It only makes sense that you know before hand what is on your report before the creditor does. Many people have had surprises sprung on them when they have been denied credit based on an entry of a late payment that they did not even remember or thought to be of any importance. While you cannot do anything if a late payment is accurately listed, it is better to know what your credit report has to say about you and be prepared with an answer.

2- Even insurance uses special credit scores that could be based on your credit history. Want good insurance rates and premiums? Better have a good credit report.

3- The interest rate that you pay on long term loans like home loans and auto loans take your score in to consideration. A credit score uses the information on the credit report. Check your report to make sure that the information reported is correct and accurate. Mistakes and errors have known to occur while reporting.

4- Even employers and landlords have started to look at your reports. Employers want to know that you are a responsible and debt free employee. Landlords want to know your payment history so they know you will pay them on time. Got late payments in the past? Unsettled debts? Check your report and see if you can pay off old debts before you start flashing your credit report around.

5- More and more people check your credit report. Apparently utility companies and even cable TV companies like to get a peek at your report before offering you a package deal. Don't want to end up making advance down payments for any and all services? Check your report and see what it has to say about you.

All this should convince you to check your report at least once a year from all the 3 credit bureaus. What remains is you can access it for free. Learn how to get a free credit report.

Presented by Anuje Cross, writing for http://www.crediaid.com, a resource for credit education and aid.

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The Fair and Accurate Credit Transactions Act of 2003 provides people in the United States the right to one free annual credit report from each of the three credit bureaus. Many customers want to know, “How do I order my free credit report? And why does this information matter to me?” Consumers who monitor their credit reports will find errors early. According to a study by the US Public Research Interest Group, 80 percent of credit reports contain errors, and 25 percent of those errors are serious. Common errors include inaccurate personal information, listing “closed” accounts as “open,” omitting loan accounts and listing mortgages or loans twice.

Ordering a Free Annual Credit Report Can Help You Monitor Identity Theft

Monitoring a free credit check will also alert consumers about identity theft before it happens. For instance, if a thief has opened new credit accounts in a consumer’s name, then the accounts will appear on the credit report. Also, changes of address may appear on the free annual credit report if a thief has obtained a new residence using the consumer’s credit report. Having a clean credit report will actually save consumers money. For instance, many insurance companies use a credit score scale to determine the rates that customers will pay for auto and homeowner’s insurance. People with poor credit tend will typically have higher premiums.

Protect Possible Job Offers by Checking for Errors On Your Free Annual Credit Report

A clean credit report will also help people to find better jobs. Recent surveys have shown that 35 percent of employers use a credit report as part of the pre-employment screening process. If someone applying for a job has incorrect information on a report, then that error could mean the loss of a lucrative job offer.
Lenders look at a customer’s credit score to decide what interest rates they will pay for loans and mortgages. Errors on a credit report could mean significantly higher interest rates, which will cost consumers a great deal of money over time. A consumer will not see a credit score on their free annual credit report, but the score may be obtained by contacting the Fair Isaac Corporation and paying a small fee.

READ THE FINE PRINT: Make Sure That Your Free Annual Credit Report is Actually Free

Consumers may get their free annual credit check on the internet, over the phone or through the mail. When ordering online, consumers will want to ensure that they are actually ordering a free, no obligation report. Some companies offer free credit reports and then charge consumers for monthly credit monitoring. The federal government’s website will not require payment information. Taking advantage of a free annual credit report is an important part of a healthy financial plan. Experts recommend obtaining one free report every four months from one credit bureau rather than ordering all three at once. This way, consumers will be reviewing their free annual credit report at least three times per year.