As of September first 2005, all Americans became able to request and obtain a free credit report from each credit bureau once each year. Checking your credit report regularly is vital to ensure accuracy and protect against possible identity theft. The sooner you check your credit report, the more time you will have to dispute inaccuracies and improve your credit information. This is important because the information contained in your credit report is used to determine your credit score which in turn is used by financial institutions to calculate the rates you will pay on loans, by insurance companies to figure the amount you will pay on your policies as well by employers to decide if you will make a good employee when applying for a job.

We all need to check our credit reports from each of the three major credit reporting agencies (Experian, Equifax, and Trans Union). This means that we must go through the process three separate times.

Spreading our requests out over a 12 month time period, is a good way to keep a constant eye on accuracy. Remember, we are all eligible for one free credit report from each agency each and every year, so be diligent and keep a close eye on yours.