Your credit file and corresponding FICO score is the best way for lenders to gauge whether or not you are a good candidate for a loan. Your credit file is a culmination of payment history, account info and a smattering of other information that tells what kind of financial history you have. This information is then used to generate a FICO score, which is the number used to ultimately tell what kind of borrower you would be. The majority of lenders that gauge your credit worthiness and determine loan approval use the FICO score. Therefore, because of its importance, checking your credit report is not only important, but also essential.

You should conduct a personal credit check at least once a year. There are a number of reasons it is so important to check your credit report. Here are a few:

• Clearing up inaccuracies: At times, inaccurate or outdates information makes it way on your credit report.  Sometimes, a report might say you’ve been behind on mortgage payments, when you haven’t. In some instances, payments made to debtors end up in someone else’s name. While you hope this will not happen to you, the reality is it may happen. At this point, the debtor then flags your credit report for late or missed payments. Checking your credit at least once a year allows you to address these inaccuracies before they have a negative effect on your financial decision making, especially if you’re hoping for a loan modification.
  
  
• Keeping track of payment schedules: You want to be sure that your lender is not only receiving your payments, but also crediting those payments to your account in a timely manner. The best way to do so is by checking your credit file to have a clear idea of whether or not your payments are being posted as “on time.”
  
  
• Identity theft: This is a big issue in today’s society and with the advent of online purchasing; it is easier than ever to make large-scale purchases in another person’s name. Checking your credit regularly will allow you to keep track of accounts opened in your name. You can ensure that you have in fact opened all credit accounts. This also allows you to match up your financial specifics to those accounts.
  
  
• Number of inquiries: All that one needs to pull your credit report these days is a social security number. Because of this, you may find that more people have checked your credit than you realize. Inquiries stay on your record for about two years. Therefore, it is important to know exactly who is pulling your credit and how often these inquiries have occurred. 

It is easy to check your credit when you take advantage of free credit report services. Keep in mind that not all services are the same and many charge an exorbitant fee for the opportunity to see your credit report from just one bureau, instead of all three. Keep in mind that it is important to see your credit file from TransUnion, Equifax and Experian, as information obtained by lenders concerning your credit is pulled from all three organizations.