It’s very important for all consumers to retain a copy of their credit report for their own records. Not only will checking credit report for free online allow them to keep a copy of their report in case there are ever any future mistakes, but it will also allow them to correct mistakes before attempting to finance a car and allow them to determine how they can best improve their current credit report.

How to Check Your Credit Report Online

• Create an account on Annual Credit Report.
• Choose which of the three bureaus you wish to receive your credit report from.
• Answer a few brief questions about your credit history for verification purposes.
• Receive your free credit report.
• Download your credit report and print it so you have a virtual and physical copy for your records.

How to Understand Your Credit Report

Once you have obtained your credit report you will need to read it. A credit report is very important to determine how good your credit currently is. This can be necessary if you are trying to apply for an auto loan or a home loan. The basics of what you will need to understand are as follows: the more credit inquiries you have the lower your credit score will be, any late payments noted will lower your credit score, your revolving balances being high will lower your credit score and finally any judgments against you will also lower your credit score.

How to Improve Your Credit Report

If you notice any errors on your credit report such as misreported balances you should have them corrected immediately so that they don’t adversely impact your credit. You should also avoid attempting to get new credit cards and you should pay down your balances as much as possible. Avoiding late payments is another way to get pristine credit, as is creating new loans such as installment loans. Automobile loans are one of the best ways to build and improve credit because they are easy to get since it typically takes just an online application to get pre approved and more importantly because they improve one’s credit substantially. Other methods may be to increase credit line limits to lower overall utilization.