If you've ever applied for a loan, such as a mortgage or auto loan, you probably know that you have a credit report. It's one of the tools lenders use to gauge your status as a borrower. The better your credit report--and, subsequently, your credit score--the more likely you are to get low interest rates and favorable loan terms. Fortunately, you can get a free instant copy of your credit report online. And there are lots of reasons you should, such as:



Check for errors!

Errors or mistakes on your credit report could bring down your credit score, making it harder for you to get approved for a loan. For example, an account that is mistakenly labeled as "charged off," but is actually an account in good standing, could lower your credit score by as much as 50 points! Any erroneous black marks on your credit report--like late payments, non-paying accounts, charge-offs or defaults--will negatively affect your credit history. It's always a smart idea to review your credit report and look for any mistakes that might be hurting your credit score.

Check for ID Theft!

Identity Theft has been making news these days, and for good reason. Technology has made it easy for a thief to get your personal information--like your credit card account numbers or your social security number. In no time at all they can use your information to open numerous new accounts in your name, and then charge all types of goods and services! Review your credit report once a year and look for any suspicious accounts, especially ones that are unfamiliar to you. If you find an account on your report that you never opened, be sure to contact both the creditor and the credit reporting agency.

Boost your score!

Maybe you've made a few late payments, or perhaps you have a few old retail store credit cards that you've never used. Your credit report can give you a quick assessment of any accounts that you own, which gives you a chance to improve your credit score. Depending in your personal situation, you might be able to boost your score by a few points if you close an old account or pay off a small balance.

Your credit report can be a useful tool for assessing your credit history and your ability to get a low cost loan. Before you apply for credit, make sure you review a free copy of your credit report online.