You?ve seen the commercials over and over again ? the guy that?s always singing about getting a free credit report. They may be slightly cheesy but they?re right ? your credit report and score can have a huge affect on your daily life. From mortgages to car loans and even employment opportunities, your credit history is going to be examined.

Even the simple process of applying for a credit card triggers a credit check. A credit report is basically a history of all your past borrowing or repaying, including information about late payments, bankruptcy and more. Banks, mortgage companies and credit card companies review your credit report to determine whether you?re too risky to loan to as well as what your interest rate should be.

Since most of your major buying decisions will be determined by your credit, it?s important to keep on top of your credit report. There are 3 major credit reporting bureaus in the U.S. – Experian, TransUnion and Equifax. Since they each have to offer you free access to your credit report once a year, you can really look at your history at least three times in a year.

These companies are actually required by law to offer free credit reports. Back in 1970, the Federal Trade Commission put into place the Fair Credit Reporting Act. One of its main tenets was requiring these national credit reporting agencies to offer a free credit report on an annual basis.

You can go through these bureaus for your free credit report if you choose. But there are also plenty of websites who will do most of the work in pulling your credit report for you. It?s important to read these offers closely, however, as many can try to lock you into paying a monthly monitoring fee when you sign up. Luckily, most have a cancellation clause that allows you to cancel before you?re actually charged, so you only have to get the free credit report.

Once you have your credit report, it?s very important to review it for mistakes. One mistake on your credit history can have a huge impact on your credit score and ability to take out loans. For example, if you had an outstanding debt, but paid it off years ago, you need to make sure it was removed from your credit report, or at least marked as resolved.

Monitoring your credit report is also a good way to keep an eye out for identity theft. If a bunch of purchases or new credit cards start showing up on your report and you have no idea what they are, congratulations. You?ve just been the victim of identity theft. Luckily, the bureaus will also work with you regarding that, as it is a serious federal offense.

Whether you want to believe it or not, your credit history holds power over your life. It can either help or hinder your decision to buy your dream home, dream car or get your dream job. Reviewing your credit report on a regular basis is one of the best ways to guard yourself against the negative affects it could potentially have on your life.

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