To stay on top of your credit, it is essential to be aware of the contents of your credit report. Why? Because checking your report is the most convenient way to review your complete credit history, and make well-informed decisions on all your past, present and future accounts. Also, it's a good idea to monitor your report for new derogatory information and unauthorized accounts that might affect your credit.

Studies have shown that many credit files contain inaccuracies, which could influence the approval process when you apply for loans, insurance, or even a job. Often the result of simple human error, they can be caused by anything from a clerical error to a computer glitch in which your file is mixed with that of someone with a similar name.

And that's not the only reason to check your report. In the past few years, identity fraud has risen dramatically. In this form of credit fraud, a thief takes over or opens accounts in your name, running up large balances in goods or cash advances. If you don't check your credit report, it could be months before you even hear about such a situation. Fortunately, new accounts opened by a thief using your identity will appear on your credit report, alerting you to the fact that identity fraud has taken place.

That's why it's essential that you check your credit report regularly--with resources such as the Online Credit Report, which provides you access to your credit report in 30 seconds! And the Merged Report, a comprehensive credit report from the three largest Credit Bureaus.