Now that we seem to be in a new era of tighter credit, your credit report is even more important than ever. The simple fact is, your credit report can have a massive impact on your life.

For example, virtually any time you apply for credit – whether it is a loan for a car, an extension to your mortgage, or an account at your favorite grocery store the people who look after deciding if you are credit worthy are going to check your credit report.

It seems that sometimes your credit report is the only thing they check. If it comes up looking rosy then you are good to go – you will probably get the credit you are after.

But if it is not so good, you can expect to be denied or, at the very least, pay a higher rate of interest. So you have a very direct interest in making sure your credit report reflects well on you.

The most significant reason you should keep an eye on your credit report is that it may include incorrect information or information that is no longer valid. If you are able to get a copy of your report, you can check it carefully for potential mistakes, and do what is necessary to get it into better shape.

Going through this process is especially important if you have gone through bankruptcy. As you probably know, bankruptcy will have gotten rid of many of your debts, so make sure those changes show up on your credit report.

Even when you have gone through bankruptcy, potential lenders are interested in your credit report because they are well aware that people who have gone through bankruptcy must eventually try to rebuild their credit.

What is included in a typical credit report? First, it contains some basic personal information such as previous addresses, public records, date of birth and your social security number.

But even more important, it provides an overview of your habits and patterns with respect to bill paying and the meeting of regular financial obligations. It shows if you pay your utility bills on time, or if you have missed payments on your credit cards. It also shows which accounts have been paid out, and how much you still owe on the ones that remain.

Your credit report does not make an official judgment concerning your credit-worthiness. It leaves that up to the lending institution. It is just a compilation of details as submitted by various lenders. The lenders themselves will draw judgments from the report, deciding whether they are prepared to extend you further credit.

The very fact that the contents of your credit report come completely from lenders suggests that it may contain errors, omissions, and stale-dated information. Monitoring your credit report is the only way you can ensure it is accurate. When you find errors you can have them fixed.

Second, most lending agencies and institutions consider your credit report a good general indication of how you handle your personal finances. Many people use their credit report as a guide to clean up their act and do better in the future. It is also an indispensable tool for helping you decide to enter into a debt consolidation or bankruptcy arrangement.

How do you obtain your credit report? There are two popular methods. The first is to write and make a request to a credit agency such as Equifax or Experian. For a small fee, they will send it to you in the mail.

A more popular method these days is to obtain your report directly online. This is a simpler and faster solution. Once again, you will pay a small fee. Shop around though, as some services will provide you with a free trial.