Your credit report is a snapshot of your credit at a particular moment in time. However, in reality that information is flowing in and out of your credit report all the time. Credit applications, home and auto loans, payments, an address change or even an inquiry from a prospective creditor all show up on your credit report and affect your credit score.

Your credit score is calculated based on the information in your credit report. Credit scores allow lenders to quickly make on-the-spot credit decisions based on a 3-digit number that sums up your credit worthiness. There are many credit scoring models in use today; all are designed to rate your likelihood to repay your debts. When you order your credit report online, you will also receive your current credit score as well as an analysis of the factors affecting your score.

Credit history is the main determining factor of credit nowadays, but there are potential problems that can work against consumers. Since some credit reports can contain inaccuracies serious enough to cause consumers to be denied credit, a loan or even a job, keeping abreast of changes to your credit file is vitally important.

Identity theft is also on the rise, now being the number one consumer complaint reported to the Federal Trade Commission. One of the first places identity theft shows up is often on your credit report. Monitoring your credit is one of the easiest and most effective ways of protecting your credit against errors and fraud.

Click HERE to get your free credit reports and free credit scores now!