Getting an annual credit report has been compared to getting an annual physical check-up. Some people may view it as something that can be put off for later. It may have been an irritating inconvenience in the years past, but today’s Internet technology has facilitated the process. It is as important to an individual’s fiscal health as a physical exam is important to his or her physical health. Also, as in a physical exam, getting a credit report can help prevent bad things from happening (financially speaking) and if financial problems already exist, viewing your credit report can prevent things from worsening.

During the past years, an individual would have had to give $9 to get a copy of his or hers credit report. Today, nontheless, consumers are entitled to get a free copy of their annual credit report, thanks to a law passed by the United States Congress in 2003: the Fair and Accurate Credit Transactions Act (FACTA). Under this law, American citizens can receive of a copy of their credit report every twelve months, without any payment. All they have to do is log on to Annual Credit Report, a web site made possible through the cooperation of the top three U. S. credit bureaus: Experian, TransUnion, and Equifax. It is also possible to request individual credit reports from these three agencies.

However, keep in mind that the content of credit reports from these agencies may differ and all the pieces of information are vital to a person’s fiscal health. Why is this so? Many people might not realize it, but there are entities that use their credit report for reasons that affect their everyday lives.

For instance, if you are applying for a mortgage, your credit report is one of the things that your potential creditor will consider. But it doesn´t apply only to mortgages, this information is also important when it comes to things such as your automobile insurance, home insurance, and loans. It all goes down to the questio: Are you credit-worthy enough for financial institutions to lend you money or underwrite your potential debt? Your credit report is one of the main factors in helping financial institutions decide this, so it is worth your time and effort to make sure that your credit report is in order; or if it is not, to take the necessary steps towards credit repair.

Even if you are certain of all your financial dealings, you might be surprised to find inaccurate information in your annual credit report. Although such occurrences are not that frequent, they can happen nevertheless. Sometimes payments you have made or debts you have cancelled may not be reflected in your credit report, and this will negatively affect loans or other financial dealings for which you are applying. You should always have the most updated copy of your credit report - any inaccuracies will be noticed and you can take the necessary steps to correct them as early as possible.

Your credit report is another exceptional indicator of whether you’ve been a victim of identity theft. Think about it: you may have given personal information such as your Social Security number to an e-mail asking for that information or to a web site requiring that you give that sort of data first before being allowed to proceed with the site’s other services. The fact is, an unauthorized person who has your Social Security number and other personal information can get loans or credit cards under your name. Fraudsters who do this usually go on a spending spree, racking up debts with you as the debtor. Meanwhile, you go about on your daily business, innocent of the fact that your credit reputation is being ruined (for, because you don’t know about your alleged “debts, ” you don’t take steps to pay them).

Getting an annual credit report, is essential to helping ensure one’s financial well-being. It can help you fix inaccurate credit data as early as possible to your advantage. And best of all, this credit repair tool is free!

Your credit report contains a list of every member creditor who has lent you money or provided you with credit in any way, at a given time. It shows your charge accounts, automobile loans, bank and student loans, home mortgage, and any other credit-related transaction. It also shows when the credit line was opened, the highest amount you ever borrowed, how much you owe now, and whether you were late or you’ve missed any payment.

Your credit report also contains certain items known as “Public Records”. Public records include any credit-related lawsuits that you may have been involved in as well as liens, repossessions, foreclosures, judgments and bankruptcies.

Credit bureaus also report the names of other member creditors who have made inquiries into your account. For example, if a potential lender sees too many recent inquiries, they might not grant you credit if they feel that you are getting overextended.

There are, however, two types of inquiries that are part of your record but are never seen by creditors. There are inquiries made by you, on your own behalf, and inquiries made by companies that send you all of those unsolicited credit card and loan offers that you get in the mail. So, while these offers may be annoying to some, the good news is that you are not being penalized by them.

How am I identified in my credit report?

Your credit report lists your name, current and previous addresses, Social Security Number, Date of Birth, Spouses Name (if you are married) and your employer. That is pretty much it, by law, your credit report cannot contain information about your race, religious beliefs, political affiliations, sexual preferences, criminal records, or any other lifestyle issues.

How far back does my credit report go?

Positive or “good” credit information remains on your report for as long as you have an active credit relationship with the creditor and for up to seven years after that relationship ends satisfactorily.

Negative, or “bad credit” remains for seven years except for bankruptcies which remain for up to 10 years. Read about all the exceptions here.

On another hand. You are entitled to a free credit report from any agency that provided information that resulted in your being denied credit, insurance or a job if you request it within 60 days of the denial.

If you are lucky enough to be a resident of Colorado, Maryland, Massachusetts, New jersey, or Vermont then there are state laws that entitle you to receive one free report from any one credit-reporting agency per year. If you live in Georgia then you may get two.

It’s always good to know what is in your credit report and who has been inquiring about your credit. Get the free credit reports you are entitled to every year and stay on top of your credit.