If you are planning on applying for a credit line or a loan, it's a good idea to check your credit report first. Even if you think your credit is fine, there may be factors on your report that will lead to the denial of your application. Being denied credit can adversely affect your credit report (as well as your self-esteem), and since you are legally entitled to a free credit report each year, it can't hurt to have a look before filling out that application.

Checking the Details of Your Experian Credit Report

Experian, one of the three major credit bureaus, provides a well-organized and easy-to-read list of information on their credit reports. Knowing what to look for on these reports can really help you prepare yourself before you fill out a credit application. When you first get the report, go through it and carefully make sure that all the information is correct.

Be sure not to gloss over information like your name, addresses where you've lived, or even your social security number. Errors in this information could lead to the denial of an application. It might also mean that you've become a victim of identity theft (particularly if you see accounts and addresses listed under your name that you do not recognize).

Another thing to keep in mind is that you should check your credit report far enough in advance of submitting your application that you have time to correct any mistakes you might find. If you're going to apply for a mortgage, for instance, check your report at least three to six months in advance. This will give you enough time to dispute (and have removed) any errors on your report that could lead to a problem with your mortgage application.