In one recent study, more than 50% of the credit reports checked contained errors. Other studies have shown similar results with as high as a 70% error rate! The most common error occurs when the information of another person, with a similar name or account number, is recorded in your credit profile. Whether you have poor credit or an outstanding credit history, you should check your credit report at least annually.

This is even more important especially if you are planning on making a major purchase such as a car or home. An accurate credit profile will simplify the credit process for both you and the creditor.

For a thorough review of your credit profile, you need to check with all three major credit reporting agencies.Information can vary between the three CRA’s and it’s important to make sure each has accurate and up-to-date information regarding your credit history.

Once you have your credit report, start by checking the accuracy of your personal information: your name, your social security number, address(es), etc. Next , examine the accounts listed in your credit history. This section lists your accounts with creditors and your payment history with them. It is important to read this entire section and make sure the information is complete and has been reported correctly. Report any errors immediately to the credit reporting agency for investigation and correction.

Finally, check the number and frequency of credit inquiries to your file. Make sure that all the inquiries were authorized by you. Potential creditors who see a high number of inquiries in a short period of time may consider you a high risk and deny you credit.