We invite any adult with a credit report to take advantage of this free offer. You may also consider an analysis of a dependent minor’s credit report if you have secured one.

Since the FACT Act went into effect in 2004, American adults have had the right to view their credit report at no cost from each of the three major consumer reporting agencies (Equifax, Experian, and TransUnion). Here are the simple steps: Request your free report(s) online at AnnualCreditReport.com.

You will provide your name, social security number, and current mailing address (and previous address if you have lived at your current address for less than 2 years)

You will then be directed to each of the CRAs to get your credit reports. Each CRA will ask you four questions to confirm your identity. These multiple-choice questions are based upon information available on your credit report. Do not hesitate to answer, “None of the above” if you do not see the correct answer or if the questions are not applicable.

It is common for a CRA to deny your online request. However, you should then attempt to get your report by phone or by mail.

When successfully pulled, you will have access to view and print your report immediately and have up to 30 days to dispute the accuracy of any information.

Request your free report(s) by phone at toll-free 877-322-8228.

The recorded instructions will inform you of the requirements, but you should have your full name, social security number, and current mailing address (and possibly previous address) ready to provide.

Request your free report(s) by mail by printing and completing the form available here and sending in a stamped, #10 envelope to Annual Credit Report Request Service, PO Box 105281, Atlanta GA 30348-5281.

Although each consumer reporting agency formats your credit report differently, you will generally find four sections on your report:

Identifying Information: The section usually includes your current and former names and aliases, current and former addresses, a list of your current and former employers, and your current and former phone numbers. You may also find your social security – or at least its last four digits – in this section.

In case you are wondering, this information comes almost exclusively from loan applications you have submitted in the past. If there is a misspelling of your name or an incorrect address or phone number, it likely stems from miskeying the information or other errors in transcribing applications.

Nothing in this section has any effect whatsoever on your credit rating.

Public records: This section includes any Chapter 7 bankruptcies you have filed in the last 10 years, any Chapter 13 bankruptcies you have filed in the past 7 years, any judgments (default or contested) against you, foreclosures from the past 7 years, and any tax liens filed against you.

A bankruptcy will have the largest negative effect on your credit. Estimates range from 25% to more than 35% of your credit score can disappear due to bankruptcy. Foreclosure and short-sales run a close second at 25% to 30%.

Tradelines: This section makes up the heart of your credit report. It will list all lines of credit and accounts you have opened or used in the past seven to ten years. These include credit cards, loans, and collection accounts.

Your trade lines will list the creditor names and phone number, account balances, dates the accounts were opened, whether the accounts are still open or now closed, and payment history.

The payment history will show whether a payment was made and whether it was late. If it was made late, it will show 30, 60, 90, 120+ or 150+ days late. Most credit reports show updates to three years of your payment history.

If a collection agency has sold your account, you may see both the previous and the current collection agency listed. The previous agency account should show a $0 balance with an indication that it has been transferred. Collection lines should also indicate the original creditor of the account, such as a cell phone service provider, utility company, or medical office.

Depending upon the CRA, this section may also be divided into “Potentially Negative Accounts” and “Accounts in Good Standing” to help you easily see which accounts have late payments, are in collections, or otherwise have negative activity on them.

Inquiries: You will find this section at the end of your credit report. An inquiry is a credit “pull” for any reason. CRAs divide inquiries into two or three sections. “Hard” or “Active” inquiries show the date and the creditor who pulled your credit report in response to your request for a new account. This will include applications for credit cards, store cards, car, and home loans, and possibly even utility, Internet provider, and cell phone accounts.

These types of inquiries have a very small and short-term effect on your credit rating. FICO has indicated that each inquiry may lower your score by as much as 1% or 2%, if at all. They remain on your report for two years but only affect your rating for one year, though after three or four months, their effect is negligible.

“Soft,” “Promotional” and “Account Review” inquiries have no effect on your credit rating. These inquiries indicate who is looking at your report for marketing or account update purposes. You may opt-out of such inquiries for two or five years by calling (888) 567-8688. To opt-out permanently, you can begin the process at OptOutPreScreen.com but must submit a signed form by email.

The sole purpose of building your credit is to minimize interest and payments in the future. With mediocre credit, you might still qualify for a home loan, but your interest rate will be much higher than the rate someone with good credit will pay, meaning you will pay much more over the term of the loan.

Your credit rating is based entirely on information on your credit report. Consequently, it is important to pull your credit report and ensure that the information it contains is accurate. Studies show that between 5% and 25% of all credit reports contain an error so serious that it would block the consumer from qualifying for a loan he or she would otherwise qualify for without the error.

Additionally, you want to make sure no one has used your identity to open fraudulent accounts in your name. If you pull your credit and see accounts that you do not recognize, working with the CRA and the creditor sooner than later will minimize the impact of the fraud.

Your credit report is a history of all your credit-related activities (borrowing, repaying, missing payments, court judgments, and bankruptcies, etc.) over the past seven to ten years. Since your credit report serves as the basis for your credit score, you should ensure that the information on your report is accurate and up-to-date.