Approximately 24% Americans have a FICO score less than 650, which makes it difficult for them to get a loan or credit card on favorable terms. If you have a low FICO credit score or even if you have a fairly decent credit score, it makes sense to try and raise your score. A good credit score not only qualifies you for more loans but also saves you thousands of dollars in interest money. When trying to improve your credit rating, the first thing you must do is to get a copy of your credit report.

Your credit rating or credit score is a number calculated on the basis of your credit history. Lenders use this number to determine your credit worthiness or ability to manage a new debt. Your credit rating is calculated by rating agencies and recorded in a credit report. Most credit reports in the United States are managed by three major national credit bureaus�"Equifax, Experian, and TransUnion.

Till some time back, it was quite difficult to get access to your credit report. Credit bureaus shared credit reports only with lenders such as banks and insurance companies. However, after an amendment made in 2004 to the federal Fair Credit Reporting Act, you are entitled to one free annual credit report from each of the three national credit reporting agencies. To obtain your free report, you can:

·Call 877-322-8228.

·Make an online request through the Web site www.annualcreditreport.com. This is the only Web site authorized to provide your free annual credit report. This site is maintained by the three major national credit bureaus. Other Web sites that may look similar may trick you into purchasing their credit monitoring services when you request for your free report.

·Fill the form at 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.

If you apply online for a free report, you would need to answer personal questions. These questions are for identification purposes only. Obtaining your report online is very simple and takes just five minutes. As each of the three national credit bureaus are required to provide you a free credit report each year, you can spread out your requests so that you get a copy of the report every four months. This is a good way of reviewing your credit report periodically for errors.