Free Credit Score Report - The Key To Your Financial Goals

A free credit score report can be the difference between getting a low interest loan for your major purchases such as a mortgage for your home, a car loan, a loan for a boat or even something as simple as a credit card or being strapped with long term, high interest debt.

When you obtain your report, the file will show your identifying information including your current and previous addresses and your employment record. It will also reflect all the activity pertaining to credit cards, loans or public records that have been reported in your name by your creditors or courts. Information may stay on a credit file for at least 7 years from the date you last used the account. This holds true for any bankruptcies that may have been discharged too.

Most often the best time to obtain your free credit score report is before making a major purchase, such as a house or car, to make sure there are no discrepancies on your file to stop you from obtaining credit at a reasonable rate. If you haven't applied for credit recently, you may want to obtain a copy of your file to make sure everything is in order. If you have applied for a credit card or any other type of loan and have been turned down because of issues with your credit report you are allowed one free report to see what the reasons are behind your denial.

_{Photo courtesy of Jason Rogers}

As you can see, your credit report can have a prominent impact on your financial future. By keeping your credit in good standing you can obtain a low interest home mortgage or lease on an apartment, auto loans, credit cards, and more. But if your credit history is not good then many of these financial options may not be available to you or you'll simply have to pay interest at a much higher rate!

Studies have shown that many credit files contain inaccuracies that can damage your credit rating, leading to rejections when you apply for loans, insurance, even a job. Many times, it could be the result of simple human error, whether it be a clerical error or a computer glitch. Your file may even be mixed up with someone with a similar name!

These are the reasons why it's crucial that you get your free credit score report, check all of your credit files and monitor your credit regularly to protect your good credit rating, even if you do pay all your bills on time. The FTC (Federal Trade Commission) encourages consumers to check their credit report at least every few months to avoid any surprises that may be clues to a possible identity theft.