A credit report is a summary of your financial relaibility - for the most part, your history of paying debts and other bills. It is prepared by credit bureaus (also known as credit reporting agencies) primarily for use by lenders, employers and others who, under federal law, have a legitimate need for the information, such as when you apply for a lona, insurance policy, apartment or job. Teh wealth of infomraiton gathered by credit bureaus, coupled with the speed of today's computer systems, explains why consumers can quickly get loans and other services.

In general, your credit report has four parts:
- Identifying information.
- Public record information...gathered from local courthouses used to determine if you have previous defaults or legal judgements against you.
- Credit history information...such as a list of your credit cards and loans, and whether payments were on time.
- Inquiries...a section that lists the creditors or other parties taht have requested your credit report.

Lenders voluntarily supply the information to credit bureaus on an ongoing basis; no federal laws require companies to submit the data. Having access to current and reliable information about you helps lenders make informed decisions and offer you financial products and services more quickly.

The Fair and Accurate Credit Transactions Act (FACT Act) enables you to obtain a free copy of your credit report once a year. The federal government has a website that enables you to obtain your report from the three credit agencies. Click here to obtain your Free Credit Report.

Many financial advisors suggest that you review your credit report once a year. It's especially important to review your credit report before making a major purchase so you can correct an error before it slows down your credit approval or prevents you from getting the best possible loan terms.