You may have had a credit card for years and must be wondering what all the fuss is about. Everybody has a credit card these days and it is almost impossible to do without one. The one thing you may have heard people discuss a lot of times would be their credit report. If you are new to credit cards and are wondering what this is all about then don't worry. It's not anything complicated but it is a very important part of your life.

When you start using credit cards, you will be having a credit history. Based on how you pay your bills and dues, whether you are late, you have missed a month altogether and so on there are details sent in to the credit unions. A credit report is compiled from all of this information that will decide on your future financial opportunities.

There are occasions where you may be denied a loan or a new credit card. The company is at all times required to give you clear reasons why and a copy of your credit report. That probably may be the first time you have heard of or seen this document. It is important as a consumer that you keep a track of your credit report from time to time. When you do so, you can avoid any unpleasant surprises and plan things accordingly. You can make decisions about a big purchase or a new credit card application without having to deal with any such issues.

What you should bear in mind most importantly is the fact that credit reports are compiled from three credit unions Experian, Trans Union and Equifax to decide on the credit score. The credit score is not disclosed to the consumer but you can annually request for a copy of the report from all three credit unions which you can view online or get in your mail.

That way you can keep track of what standing you have- whether our credit is good, poor or fair. Make sure that you also cross verify all the details on your credit report. You may have been wrongly billed. Or your report may be incorrect. So if there are particulars that seem inauthentic or unclear you can request for clarification. The Federal trading commission will look into the matter and your query will be answered before any further processing is done on your report.

When you look at free credit report make sure you scrutinize your payment history, the cards you have on the report, the outstanding amounts that need to be paid by you, and the type of credit you are using currently. Each of these factors has an effect on your credit score. You should not approach any agencies that are not authorized to confirm or cross verify your credit report as it is personal information that could get misused. You can get free resources that will help you understand verify your credit reports online so do not fall for any so called agency that asks for the consumer to pay first!