Your credit report consists of your personal information and your credit history and can have a big impact on your life. The three credit agencies are Trans Union, Experian and Equifax and because of a new federal law, everyone is entitled to one free credit report each year from each agency.

Your credit report with your credit score and history is a way for you to inform others about your debt paying habits. If you have a high credit score, most lenders will offer you better rates and terms. If your score is low, this may show that you are a higher risk to creditors. You may be able to obtain credit, but it may have a higher rate. A low score may make it hard to rent or buy a home, raise insurance rates and determine deposits for utilities. Having a lower score may also make it challenging for you to get a particular job that you desire.

How do you know if you have a credit report? You have one if you have ever applied for:

1. A credit card
2. A student loan
3. A mortgage
4. An auto loan

There are many people and companies who look into reports. Some include:

1. Landlords
2. Potential creditors
3. Current and potential employers
4. Insurance companies
5. Government licensing agencies

What are people and companies are looking for when inquiring into your report?

1. How promptly you pay bills
2. How many credit cards you have
3. The total amount of credit you have been given
4. The total amount you owe

There are times when mistakes made have bad consequences on your credit. Any information that is negative and found on your report could hold you back from getting credit, getting a new job, advancement in a current job or from renting or buying a home. Some of those mistakes may include late payments, too much debt and bankruptcies.