So you’ve done everything right (or mostly right) when it comes to your credit. You pay your bills on time, you don’t go over your credit limit, you’ve even paid off all of your student loans. Yet when you apply for your first credit report, it doesn’t seem to add up. Somehow your credit history has gotten confused with your cousin (who has a similar name), you see missed payments on credit cards dating to when you were a teenager, and someone has taken out a cable plan in your name three states away!

Sadly, individuals aside from you can play a factor in your credit report. There are many different ways this can happen – usually through identity theft or identification mistakes. No matter how bad the damage may seem, just relax and figure out exactly what is going on in the report.

How does this happen? There are many different ways. Most of these though are through mix ups with the report. This means that they someone cross referenced your information with someone who has a closely related name; which ultimately results in an awkward score that can be easily disputed. However, if this does happen to you; remember to get your credit report more regularly in case it does not get fixed right away.

Your credit history includes credit cards taken out before you were 18: When you were growing up, your parents may have given you a credit card in your name for “emergencies only” that was tied to their own credit cards. Whether or not you used it properly (remember those “emergency” CD purchases?), if your parents did not pay the bill, you are in a credit emergency of your own. This is an issue that you should be able to dispute, but it takes a little more time.

Your credit/identity has been stolen: Just like your cousin with the same name, that cable bill in another state may be a coincidence, especially if you have a common name. However, it is also possible that your identity has been stolen. In addition to disputing the charges on your credit report IMMEDIATELY, you should take some other actions.

If you are suspicious of identity theft, check your bank accounts and credit cards. Anything that does not look like something you did, check into it. Say you were right and there were incorrect charges – report it right away. Put a stop to their illegal spending by putting a hold onto your accounts so the funding is cut off.

You can also file reports with your state and the Federal Trade Commission regarding the fraudulent claims on your credit. By filing, you prove to the credit reporting agency that you are serious about these claims, and you may also protect others from facing the same problems you have.

Overall; just be a little more careful with your information. Other people can alter your credit score which hurts you and does not bother them at all. Be cautious when talking about your finances so that you can keep your identity and funds secure.

How often should you check your credit report? The simple answer is this: once a year. However, everyone is an individual with different circumstances, so one size does not fit all. For those with good credit, once a year may be enough. However, in this economy, many people are opening more accounts and dealing with other situations that would call for more frequent credit report checks. It is important to know when to check your credit report.

In these times, with so much identity theft, just checking your credit card statements every month may not be enough. A new account won’t show up on your credit card bill, but you will see that a thief has stolen your identity on a credit report, since credit reports show new accounts that have been opened.

Receiving a phone call about debt you didn’t know you owed is not the best way to find out your identity has been stolen. You will have a much better chance of dealing with identity theft if you detect it early on, by checking your credit report before the problem gets out of hand. There are also other situations in which it is important to check your credit report.

Perhaps you have had credit problems in the past and you are trying to work your way out of them. Or, perhaps you have excellent credit and would like to keep it that way. By checking your credit report and being aware of what creditors have reported and the accounts that are there, you will be able to rectify your bad credit or maintain your current credit score.

Applying for a loan is another situation where you need to know what is on your credit report. You will want to know what reason a creditor may have for denying you a loan. If you are denied for a loan, it could be something as small as a twenty dollar debt from four years ago. If you are rejected for a loan, you are entitled to pull a free credit report, which you should look over to ensure that all information is correct.

The credit reporting bureau that produces credit reports is not infallible and every once in a while, a human error can pop up in a report. Legally you may challenge a report that you deem to be inaccurate and, because they are required to by law, credit agencies must investigate your complaint.

You have the right to know what your credit report says about you. Whether you are looking into getting a loan, or just trying to make sure your identity has not been stolen, it is important to keep aware of what information is on your credit report.

You have the legal right to pull one credit report per year for free. Don’t pass up this right. And remember, if you are looking into applying for a loan, trying to improve your credit score, or just looking out for identity fraud, pull your credit report frequently enough to make sure your credit information is accurate.

A personas credit score can tell a lot about a person and it can even help someone make life changing decisions. A bad credit score can hold someone back from living where they want or driving the car of their dreams. The better your credit score is, the better off you will be in life.

Even though your credit score plays a large role in determining whether or not you are able to make large purchases or not, many people do not know their score. This is funny because in order to ensure the purchase of a large item such as a car, the credit score must be good. This is why you should check your score before you apply for a loan on a large object.

One way you can learn your credit score is by visiting credit report sites. One site will give you the FICO score which was produced by the group Fair Isaac. A personas FICO score can range between two and eight hundred. The higher the score is, the better your credit score will be.

When you want to apply check credit report services to find out what your FICO score is. You have the ability to check your scores for free once yearly, and you can keep tabs on your open accounts. This will allow you to ensure no activity is occurring in your credit history that could hurt your chances of getting credit.

If your credit has gotten bad over time, you may have to work to improve it to get the amount of credit you want. Credit repair doesn’t happen overnight, and for many people it may not occur unless you work to improve your credit status. If you pay attention to how credit works, you can improve your score quickly.

If you have credit below 620 then you may want to receive additional help or consultation when it comes to your credit score. You can get additional help through services and credit bureaus. These companies and people will help to get your credit score on the right track.

Many people do not believe this but your credit score can actually reflect you as a person. Many people will bad credit scores like to charge a lot of money onto credit cards. Then they will typically have high monthly bills that they are unable to pay on time which lowers their score. People with high credit scores typically do not charge a lot on their credit cards.

Now that you are aware exactly how important your credit score is, make sure you take good care of it. Do not pay bills late or run up the balance on your card because that will result in a low score. Take charge of your spending habits, be responsible, and you will have a great credit score as a result.