It’s disappointing to apply for a loan and be turned down, or offered a high rate because your credit score is too low. It’s even worse to be denied because of erroneous information in your credit report. And it’s really bad to discover that your credit report contains negative information because you’ve been a victim of identity theft!

All of these situations can be avoided by monitoring your credit history carefully. This is easy to do, because you’re entitled to free copies of your three credit reports every year.

How to order your credit reports:

You can order your reports in several ways:

• Visit www.annualcreditreport.com
• Call toll-free: 1-877-322-8228
• Mail a request to: Annual Credit Report Service, PO Box 105281, Atlanta, GA 30348-5281

For more continuous monitoring, experts recommend ordering one report every four months.

What to do with your report once you get it:

The first thing you should do is to make sure all the information in your report is correct. If there are errors, contact the credit reporting agency in writing. Include a copy of the report with the items in question circled.

You can learn your credit score for a small additional fee. This is the number lenders use to determine whether you are a good credit risk. Your credit history may also be viewed by potential employers, landlords or insurance companies, so it’s important to make sure your report is accurate and your score is as high as possible.

How to improve your credit score:

Here are some steps you can take to improve your score:

• Pay your bills on time. It’s simple advice, but it’s the single most important thing you can do to establish good credit.
• Make sure your credit report is accurate. If you have been turned down for credit, you’re entitled to a free copy. Otherwise, there may be a small fee.
• Beware of “quick fix” schemes. Many credit repair services charge hefty fees for services you could easily do for yourself.
• Limit your credit card use. Cut them up if necessary.
• Ask us for help. Our financial counselors will go over your credit report with you if you like, and they can help you set up a plan for paying off debt and boosting your score.