Credit reports contain a wealth of information about your credit history. That’s why it's important to do a careful review at least once a year and ensure their accuracy. Checking your reports will help you identify potential errors that could negatively affect your credit score or notify you of potential identity fraud, which could have multiple legal consequences.

There are many ways to get a free credit report. You can obtain free reports every week from AnnualCreditReport.com, although this report does not include your credit score. You also have the option of obtaining free credit reports on a daily basis when you create accounts with any of the three credit bureaus — Experian, TransUnion and Equifax.

When to check your credit reports

If you do not have an account with a credit bureau and need to check your report more frequently, you can obtain your free credit report by contacting a credit bureau if:

• You believe you may be a victim of identity theft.
• You have been denied credit, employment, insurance or rental housing in the past 60 days due to your credit score.
• You receive welfare benefits or if you are unemployed.

How to check your credit reports

As you look over your credit report, be sure to check the following:

• Accuracy: Confirm the spelling and accuracy of your name and other personal information such as current and previous addresses and your Social Security number (SSN).
• Open credit lines: Ensure any open account with a balance is one that has been opened with your authorization.
• Credit inquiries: Be sure to review this section to verify all inquiries are valid. Because these inquiries indicate to other lenders that you have applied for new credit, lenders may view multiple recent inquiries on your credit report as a sign that you may be overextending yourself.
• Public record information: Check that any public record information such as tax liens, monetary judgments, bankruptcies, etc., is accurate and reflects the most current status and activity. Keep in mind that there may be a delay of 30 days or more until the most recent activity appears on your credit reports.
• If you find inaccuracies in your credit report, consider filing a dispute with the credit bureaus.