The first step you need to take to fix your credit report is to request a copy of your report from each of the major credit reporting agencies. These agencies are Equifax, Experian and TransUnion. Once you have done this and have each of the credit reports in front of you, it will be time to put your nose to the grindstone and fix your credit report.

Once you receive your credit report from each of the agencies you need to review it. Look for anything that does not belong, like a loan that you didn’t apply for or a credit card history when you don’t have a credit card. Also be sure to check the address and employment histories. Should you find something that you want to dispute, write it down in detail and notify the credit reporting agency .

If there is a valid negative history on your credit report, the only way to fix your credit report is to pay that debt. A valid negative history is an account that you know you owe, but you haven’t, for whatever reason, paid off. A negative history on your credit report can last up to seven years, ten years if it is a bankruptcy.

If you know there is a negative history and you really want to fix your credit report, and fix it legally, you need to contact the companies that you owe money to and try to come to some kind of arrangement to make payments. If you are paying on a delinquent account, most of the time it will show on your credit report that you are doing so.

A clean credit report is basically a credit report that doesn’t show any kind of delinquencies, garnishments, judgments or collections. It shows that you do have (or have had) credit extended to you and you have had the personal responsibility to pay your debts back in a timely and agreed upon manner. Having a clean credit report can go a long way in being able to finance a home or a vehicle, or to getting that credit card you may need to have in case of emergencies.

If you do not have a clean credit report, don’t despair. Even with bad credit, given time and the resolve to do so, you can clean your credit report up. If you have accounts that you know are past due, contact the companies and see if there is something, anything that you can work out. Can you only pay $25 a month and don’t feel they would accept it? Guess again.  Most companies will take whatever you can offer to keep from having to write off your debt and pay for it themselves.

A clean credit report also shows a strong work history and a lengthy residence history. If you can keep from changing jobs, do so. However, if there is a huge income difference, go for it. Credit companies do take that into consideration. Are you thinking about moving? Is it a necessity, or just something you want to do? By living in same place for a while, it shows that you have stability.

A clean credit report means that you have avenues of help open to you if you need them, or that you can finally go buy that new sofa you’ve been looking at. Better yet, it means you can send Jane off to college and finally have a spare room for that home office that you’ve always wanted to have.

Thanks to new legislation that recently went into effect, you can receive your annual credit report from all three agencies free of charge. To do this, simply contact the agencies in writing and request your free annual credit report or go online to their websites to request it. The three major credit reporting agencies that you can receive your credit report from are Equifax, Experian and TransUnion.

Once you receive your annual credit report, you need to take the time to review each one and verify the information. Your credit report will tell you all of the credit accounts that you have open, whether you have any late payment history, a recent history of any judgments that have been made against you, and your address and employment history. If there are accounts or judgments that you do not recognize in your annual credit report you should write down the information and contact the credit reporting agency as soon as possible. These are all signs of identity theft.

You cannot underestimate the importance of your annual credit report. Your credit score is based solely on the information in your credit report, and a bad score could keep you from financing a home or a new vehicle. By checking your annual credit report you can keep track of what is going on with your credit and whether someone has stolen or tried to steal your identity. Even if you know you have bad credit, it is still a good idea to request an annual credit report. Though companies do what they can to verify identity, there are identity thieves that know their way around the verification process.

Reviewing your annual credit report may not stop identity theft, but it gives you one of the tools that you need to stop it quickly if your identity is stolen.