by Lucy May

Created on: May 11, 2009

No other document in your life will ever be as important as your personal credit report. This credit history file can literally shape your career, where you live and how well you exist. The most amazing fact however, is that despite its importance, so few people have ever taken the opportunity to review it.

People work on the assumption that they do not have any debt; always pay their bills on time and live their lives with no problems. Unfortunately mistakes can so easily happen on your credit report and by the time you discover the error and begin to set the records straight, it could mean a loss of a house purchase, a career move or something equally important to you.

Everybody should know what's contained within their own report and how it is used. It is highly recommended that you view your report at least once a year. Sign up with one of the top three credit report companies: Experian, Equifax or Trans Union and apply for your free copy.

When you receive your free report read through the document very carefully, checking each and every account that you hold with the information shown on your credit history.

You will find there are four main areas:

1. Your personal details

2. All of your credit accounts, amounts paid and owed. Includes Banks, Utilities, and Loans.

3. Public records, any county court information.

4. Details of any companies who have requested to view your report.

If you should discover any errors ensure that you report your findings back to the credit bureau immediately, in order to clear the mistakes on your report.

It is important to know that your credit history is in excellent shape, if you are considering moving house, applying for additional credit on say a car loan or even switching jobs, you need the security of knowing that any company who requests access to your report will discover what you already know to be completely clean.

For some people who have had any problems with repayments in the past, it is always a good idea to view your credit report. Here you will be able to view where a lender may see a trouble spot and you can gain advice as to making repairs to your credit score. Try to ensure payments are always met on time, if possible pay a little extra to help reduce the amount owed and in particular do not sign up for any new line of credit.

Your credit history can remain on your report for up to ten years and even if you did have any problems at one stage, if you have been correcting this, then any new lenders viewing will be able to see how you have handled your finances in recent months. So it really is important to know what is in your credit report and whether you can relax or start to repair.

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