Posted by Mike Smith :: June 28, 2007 @ 10:13 am

Components that make up your credit score are readily available. Many people are still surprised when they learn their score. In order to truly understand why your score is what it is, you need the detailed information contained in your credit report.

As required by The Fair Credit Reporting Act, you are entitled to one free copy of your credit report each year. Be careful where you obtain your free report. Many sites that claim to give you your report for free only do so if you register for another one of their services. The Federal Trade Commission’s website contains information on the official site offering this service.

The most obvious reason to check your credit report on at least a yearly basis is to make certain that it contains accurate information. Errors in your credit report can lower your credit score. The process for correcting errors, particularly glaring ones, tends to be relatively straightforward.

Readers who want to stay on top of their credit report even more closely might consider registering for a credit monitoring service. In addition to giving you access to your credit report at any time, some services allow you to set up customized email alerts to notify you if changes occur to your report.

For example, you might want to be alerted if the balance due on a particular account rose by more than a certain percent from the previous month. Similar alerts can be established for change of address, applications for new credit, etc.

With the use of a credit monitoring service, or at the very least reviewing your credit report on a yearly basis, you can ensure that your credit score will accurately reflect your credit-worthiness.