Staying on top of your credit means being aware of the contents of your credit report. Checking your report is the most convenient way to review your complete credit history. It's also a good idea to monitor your report for new derogatory information and unauthorized accounts that might affect your credit.

Studies have shown that many credit files contain inaccuracies, which could influence the approval process when you apply for loans, credit cards, or insurance. Human error is usually the cause for these errors, but sometimes credit files can get 'mixed' due to similar names.

Another major reason to check your credit report is because in the past few years, identity fraud has risen dramatically. In this form of credit fraud, someone may take over your account or even open new ones in your name, usually running up large balances. If you don't check your credit report, it could be months before you even hear about such a situation. However, newly opened accounts will appear on your credit report, and if you regularly check your report you'll quickly notice the unauthorized use. And the quicker fraudulent activity is noticed, the quicker you can report the error. These situations can take several months to clear up, so acting quickly is essential to keeping your good credit standing.

And if you are trying to rebuild your credit, obtaining a credit report is crucial. The report will allow you to see where the big problems are, and allow you to begin a strategy to repay your debt, and fix your credit. Some derogatory items can stay on your report for several years, but being informed of them beforehand may allow you to take care of the problem, before it affects your credit.