A credit score is purely an evidence of your credit habits. Your credit report is sought every time you apply for credit, mortgage or loans; every time some one makes an inquiry of your credit record and it also displays how you manage your credits. You are entitled to have one free credit report every year, according to federal law, from each of the three major credit bureaus.

Your credit score is the record of the sum of your credit activities throughout the year. Your credit report lists all your credit card accounts, your loans that you might have applied for, your balances, and how regular you are in making your payments. The credit report also shows if there were any bad points in your credit history, that is if any action had been taken against you because of unpaid dues or bills. To keep track of your credit score you can seek credit score from any credit reporting agency. The world of Internet is full of such agencies which can help you get you score and a free copy of your credit report.

A credit report is purely an evidence of your credit habits. The report is sought every time you apply for credit, mortgage or loans; every time someone makes an inquiry of your credit record and it also displays how you manage your credit. You can ask for your free annual credit report from a credit bureau. Usually people ask for their credit report if they are rejected on grounds of bad credit history or other negative facts regarding their credit. Lenders evaluate your financial responsibility using the information your credit report provides to them including personal information such as your name, date of birth, Social Security Number and such. The report would include your previous addresses, your employer's details, public records like if you had bankruptcies, judgments or liens. But what matters most to lenders in your credit score is the report of your credit card payments, mortgage and loan history and their repayment details. They try to find out if you have a good credit score or a poor credit score before they lend you a loan.

It is a good idea to get a free credit report when you have been denied a loan or when you are making preparations to get a loan or purchase insurance. You want to make sure that everything is accurate in your credit report before you show it to a lender. According to Federal law, you are entitled to get one free credit report per year from any of the three credit bureaus. Checking your credit score only once a year while good, is not enough to protect you from the increasing identity theft that is occurring in the US. Hence you should obtain your free credit reports from each of the bureaus at different times throughout the year. You can make it at every 3 or 4 months to have a consistent update of your credit.

Residents of some states like California, Maryland, Colorado, New Jersey, Vermont and Massachusetts are entitled to have one free credit score report per year from federal financial agencies, while residents of Georgia are entitled to get two free credit reports. You are entitled to have only one free credit report every year from each of the credit bureaus ? Equifax, TransUnion and Experian. So don't rely on emails where companies promise to provide you with a free credit report, if you have already exhausted your three free opportunities.