Some people find themselves with a messy financial situation and therefore credit reports are not a pleasant topic. However, credit reports provide you with the facts. And even if the information is undesirable it can be like a helpful guide on your road to financial recovery. Being well informed is important and necessary information can be found in your credit report.

Those reports are maintained - at least in the U.S. - chiefly by the three major credit reporting agencies: Equifax (PO Box 740241, Atlanta, GA 30374; www.equifax.com), Experian (PO Box 2002, Allen TX 75013, www.experian.com) and TransUnion (PO Box 2000, Chester, PA 19022; www.transunion.com).

The reports contain a multi-year history of your credit cards, home loans and other debt. They also record any late payments that occurred and how late they were, 30-day past due, 60-day past due, etc. The reports will list any current and old address, and often your phone number and social security number.

Your credit report can be requested by almost all lending institutions, banks, mortgage lenders and credit card companies. Other entities and individuals can request your report in connection with legal proceedings. The credit agencies are committed to giving an accurate report. However, despite their best efforts errors do occur.

Errors are sometimes made in recording payments made to bring a past due balance current. At times your credit report will list loans as active or credit cards as open that you have closed out or paid off some time ago. There are many different computer systems operating out there that may not always transmit information one to another accurately or in a timely manner. That leads to reporting errors.

The only thing an individual can do about this - out of self-protection, if nothing else - is to get copies from all three agencies and review them thoroughly. Make a note of any errors, establish proof of the error, then send a registered letter with the proof to the agency asking them to correct the data.

Everyone can receive one free copy of their credit report each year. You can request your credit report on line or by phone. If requesting your credit report via the internet you can visit annualcreditreport.com

Knowing your current credit status can help you game plan for your financial future. A knowledge of your credit history can be instrumental in helping you set goals to eliminate your debt and avoid unnecessary debt in the future.

When you receive your credit report review it carefully for any past due balances. Resolve these quickly paying off the smaller balances first and then move along to the larger balances until all past due balances have been cleared. In time you will be on your way to a cleaner credit report.