One of the most important things that you can do is to monitor your credit report. Monitoring your credit report is the only way that you are going to catch errors that will affect your credit score. It is good practice to pull your credit report each year or every six months. If you are about to make a large purchase such as a house or car it would be a good idea to check your report long before you try to obtain financing. With so many companies out there that offer a credit report and credit score which one should you choose?

You are entitled to one free credit report per year from the three credit reporting agencies – Equafax, Experian, and TransUnion. There are three ways to obtain your annual credit report which is by mail, phone, or the annual credit report website.

There is one website that the staff at Healthy Financial Habits found to be useful. annualcreditreport.com seems to be the most useful and free service out there. At this website you are able to view and print your credit report every 12 months.

Once you have received your free credit report you should print it out and take a look over it. You will notice that each account that you have open or has recently been closed is listed along with their address and phone number if available. The TransUnion report will list information such as your last reported balance, what date it was updated, highest balance, past due payments, payment status, what day you opened the account and what date it was last paid. You will also notice different colored boxes corresponding to your account status. Each month creditors and lenders report whether you paid your account on time or late. The corresponding color box will appear for each month. If your credit report has all green Oks then you are good to go.

Take a look over you report and investigate any late payments or closed accounts. It is common for lenders and creditors to make mistakes. If you notice any suspicious activity on your report or have questions about a late payment you must immediately contact the account in order to take corrective action and save your credit score.

Author: Mike Smitt

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