When You Need Financial Help

• With the exception of creditors and lenders like payday advance companies, virtually every reputable lender will run a credit check on you when you apply for financing of any kind. Sometimes, they produce credit scores based on their own formulas. If you get turned down for a new credit account because they say your credit score is too low, you can use your copy of your credit report and score to demonstrate that your credit score actually is good and that your report is clean. You are entitled to a free copy of your credit report if you are on welfare. If you want to apply for other aid programs, you may want to take advantage of this. For example, if you want to apply for subsidized housing, you can provide a copy of the report to a potential landlord.
  
  

When You Need to Rebuild Your Credit

• Creditors and lenders are supposed to report to credit bureaus as accurately as possible. Even so, mistakes happen. A free copy of your credit report lets you spot these mistakes. If you contact the credit bureaus, your lenders and creditors in writing and make an evidence-based case for why the report is wrong, you can get the negative information on your report removed. This can improve your credit score, which in turn may make you look more favorable to new creditors and lenders and help rebuild your credit. Even if there is no inaccurate information on the report, having a copy when you need to rebuild your credit is useful because it shows you the exact items that are hurting your credit.
  
  

When You Suspect Fraud/Identity Theft

• If you've been turned down by creditors and lenders for something on your credit report you know isn't accurate -- for example, a creditor says you've got six delinquent credit card accounts and you don't even have a credit card -- this is a huge tip-off that you're a victim of fraud or identity theft. The free copy of your credit account can give you useful information such as how long the negative information has been on your report, the name of agencies involved and the amounts others say you owe. Without this information, it's much harder to refute the false information and prosecute the offenders.
  
  

Around Tax Time

• If you haven't needed to apply for new financing and don't suspect anything is wrong with your report or score, request your free copy of your credit report around tax time. At this time of year, you're going through your finances anyway. You can review the report as you're figuring out if you owe Uncle Sam and have a complete picture of your financial situation. If you do this every year, keep the copies of your report filed with your tax documents so you can go back and track your history easily. File early, and you'll have a good idea of your credit situation for most of the year.