So, you've decided to finally begin the process of repairing your credit. The first step is to obtain your credit reports to see what exactly is being shown. There are several situations in which a person is eligible to receive a copy of their credit report.

One is when you're unemployed. But you must be actively seeking re-employment within the next 60 days. Another way is if you have been a victim or suspect you've been victimized by fraud. People who are receiving public aid are also qualified to receive a free copy of their credit report. The most obvious and well known way to get a copy is when you've been denied credit at a place where you applied.

Several years ago the big three credit bureaus set up one central site where consumers can get a copy of all three of their credit files, AnnualCreditReport(.com). Why get all three you ask? Simple. The bureaus may all be in the same business, but they don't share information among themselves. Some bureaus will more of your information on file, others may have less.

Remember, you may get your credit report free once a year, but that does not include your score. Ah Ha! You didn't think it would be that easy really? Now you can begin the process of repairing your credit file. Look for incorrect items. Are there any accounts showing incorrect balances or payment histories. These mistakes costs the consumer greatly. It can cost more in higher interest which in turn causes higher house and car payments.