You should check your credit report at least once a year to make sure there are no errors that could keep you from getting credit or best available terms on a loan.  You should also check your report before making a major purchase that would involve a loan, such as a house or a car. Be sure the information in the report is accurate and up-to-date.

It is also a good idea to review your credit information regularly to guard against identity theft.  Identity theft occurs when someone uses your personal or financial information to commit fraud. For example, an identity thief may use your information to open a new credit card account in your name. When they do not pay the bills, the delinquent account is reported on your credit report, damaging your ability to get credit in the future and subjecting you to calls from bill collectors. For more information, visit the Federal Trade Commission's Fighting Back against Identity Theft website.

Besides checking your credit report, you should also review at least once a year the reports that specialty reporting companies have you relating to your: medical records or payments, residential or tenant history, check writing history, employment history, or insurance claims.

TIP: Fix errors in your credit report. The information in your credit report affects whether you can get a loan – and how much you will have to pay to borrow money. So if you find something wrong with your credit report, dispute it. Be on the lookout for loans or credit cards listed that you never opened, misspelled names, or collection items that were not updated after a settlement was reached and satisfied.

Also, be on the lookout for duplicates of the same debt appearing on your report. There should only be one listing of each debt you owe. The information in your credit report affects whether you can get a loan — and how much you will have to pay to borrow money.