You have finally done it! You've scrimped and saved, cut out coupons and forgone the expensive coffee drinks. You've put every extra penny away, and now with your down payment in hand you are ready to march to the bank and apply for a mortgage. There's only one problem: the bank won't finance you because of your poor credit.

How many times has this scenario played out in banks all across the country? It's sad to say that many potential borrowers still do not understand the power of their credit score. Had you obtained your online free credit report before approaching the bank, you would have known about the negative items and taken steps to correct them.

Your credit report is often the only concrete information that a potential lender has about you. You may be the most wonderful person in the world. You may have saved a basket full of kittens from a fire and returned an elderly man's lost wallet on your way to the bank. Still, the bank will not loan you money if the information contained in your credit report is mostly negative.

But how can getting a personal free credit report prevent you from being turned down for a loan? Your free credit report can alert you to potential problems with your credit and give you a chance to address any discrepancies. There have been estimates in the financial community that more than 70 percent of credit reports contain some kind of inaccurate information. Do you want someone else's mistake to cost you the dream of owning your own home?

If there is negative information on your credit report that is accurate, checking it well in advance of applying for a loan will make it possible for you to clean up your credit before you need it. You can pay outstanding amounts, ask creditors to update their reporting of your account, or simply be prepared to explain derogatory items to your future lenders.

Getting an instant free credit report online will allow you to check your credit score right then and there and avoid the waiting period usually required to get this information. The sooner you know that there is a problem, the sooner you can start taking steps to fix it.

Even if you aren't planning a large purchase, there are plenty of good reasons for consumers to get a free credit report right now. Identity theft is on the rise, and many victims have no idea that it's happened to them until they try to make a credit purchase and find their credit ruined. Don't let yourself be one of the thousands of consumers every year to be taken by surprise! A free credit report alerts you that there is something amiss.

Who else needs a free credit report? If you have been denied credit already, you will no doubt be very curious as to the reason for the denial. Getting an instant free credit report tells you immediately what types of negative credit items are holding you back from the credit you need.

Of course, many people get their personal free credit report simply because they want to know. It's your credit report and it's your right to know what's on it. You don't have to wait for a big purchase or a denial of credit to find out exactly what your creditors are saying about you. In fact, it is recommended that everyone in the country check their free credit report yearly, regardless of big purchases or credit denials.

Checking your personal free credit report regularly is one of the easiest steps you can take toward ensuring a healthy financial future. Having this information in front of you can help you to make a clear plan to get out of debt and fix any discrepancies or negative items on your credit report. Even if you aren't ready to buy a house or car just yet, there's no time like the present to prepare for those future purchases.