Step 1. Get A Credit Report From All Three Reporting Agencies

If you are not sure why you need to get a credit report form all three credit reporting agencies you should read How Credit Score Works.

As a quick overview, we offer this explanation - You need all three reports because not all creditors report to all three agencies and not all information is reported at the same time to the credit reporting agencies.

The good news is that getting your credit report from all three agencies is simple and free. Don't be fooled by web sites that promise you "FREE CREDIT REPORTS" or have fancy commercials on TV. As we keep recommending; just go right to the source and you will not be disappointed or ripped off.

AnnualCreditReport.com is a centralized service for consumers to request free annual credit reports. It was created by the three nationwide consumer credit reporting companies - Equifax, Experian and TransUnion. This is the only service authorized by Equifax, Experian and TransUnion for this purpose.

MyFico is another good place to get your credit report. The advantage of going with MyFico is that you can get your credit report and your credit score. As you know you can't get a a credit score for free but with a 30 day free trial it is as close to free as you can get.

Once you have your credit reports it is time to get busy. Go to the next step - Read and Understand Your Credit Reports