Checking your credit reports

If you are applying for a loan or credit, records of your previous dealings with someone else's money are vital.

Whether you get that credit card, or not, may depend on a network of credit reporting agencies that either share information with, or are owned by, three major credit bureaus. This report is often a critical factor in credit scoring systems that lenders use to issue credit cards as well as mortgages or other loans.

So, if you're considering making a major financial move it's a good idea to check your credit report to know where you stand. That way you can be aware of, and if necessary take care of, problems before they jump up and derail your plans.

If you find problems, or if potential creditors discover them, take steps to rebuild damaged credit and clean up that record.

If you've made mistakes in paying previous loans, bounced checks, made late payments or had other problems, you may still be able to reduce the amount of damage they will do to your credit with explanations or some basic repair.

Getting your hands on your credit report
Obtaining copies of your credit reports is easy. Thanks to a 2004 federal law everyone is entitled to one free credit report from each of the main credit reporting agencies -- Equifax, Experian and TransUnion -- per year.

You must request your free credit reports through a centralized source. To order online, visit www.annualcreditreport.com. By phone, call 877-322-8228. Or, you may complete the form on the back of the Annual Credit Report Request brochure, and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281.

Three other opportunities to receive a free copy of your credit report:

1. If you applied for a loan and were turned down, you can request a copy by writing the correct credit bureau within 30 days of the rejection. With your request, you should include a copy of the declined loan application. 2. You can also get a free report if you are unemployed, planning to apply for jobs in the next 60 days, receiving public welfare assistance or believe the credit file contains mistakes resulting from fraud. 3. Some states already offer a free annual credit report from each of the three agencies. Residents of Colorado, Maine, Massachusetts, Maryland, New Jersey and Vermont are entitled to one free series annually. Georgia residents are entitled to two free annual credit reports from each credit reporting agency.