Your credit report contains information about where you live, how you take care of your bills, and whether you’ve been sued or arrested, or have filed for bankruptcy. Credit reporting agencies sell the data in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s credit reporting companies.
Some financial advisors and consumer advocates say that you should look at your credit report periodically. Why?