Your credit report contains information about where you live, how you pay your bills, and whether you’ve been sued or arrested, or have filed for bankruptcy. Consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. Don’t wait until it’s time to apply for a car loan or other major purchase to check your credit.

The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies. Some financial advisors and consumer advocates suggest that you review your credit report periodically.

The only way to catch errors in your credit report is to check your credit on a regular basis. Remember, the information in your credit report will ultimately determine whether you can get a loan — and how much you will have to pay in interest.  This information will also affect how much of a down payment you will pay and what type of programs you qualify for.  If you don’t want to do this yourself, consider a good credit monitoring service that will do this for you.

When you check your credit, make sure that the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job.

Credit monitoring is also the best way to help guard against identity theft — or at the very lease, to catch and stop it early. Identify theft is whens when someone uses your personal information like your name, your social security number, or your credit card number  to commit fraud.

Identity thieves may use your information to open a new credit card account in your name. Then, when they don’t pay the bills, the delinquent accounts are reported to your credit report. Inaccurate information can affect your ability to buy a car, get credit, insurance, or even a job.

With the tight credit markets, it’s become harder to get a car loan with bad credit or bankruptcy.   Here’s an interesting explanation from a bankruptcy blog…

Its more difficult for anyone to get credit today, and its particularly becoming more difficult to get credit after filing bankruptcy. I had a conversation yesterday with a man who manages a large car dealership. He has been in the car business for over 20 years. He said that before the banking crisis banks would give car loans to people within two years after they had filed Chapter 7 bankruptcy if they had average or better credit scores. Now, lenders are not considering car loans until at least three years after bankruptcy. Good credit scores are insufficient. Car lenders are also examining debt/income ratios, and they are denying car loans to people if it looks like they have again, after bankruptcy, taken on more debt than they should or could afford.  From Its Becoming Harder To Get Car Loan After Chapter 7 Bankruptcy:

This is why it’s so important to monitor your credit and maintain a high credit score!