A few years ago, getting a free credit report was virtually unheard of. If there were any such options, there was a lot of fine print and hidden fees involved. Over the recent past, the government stepped in and consumers are passed a law which gave consumers the right to request a free credit report from all three bureaus once in a 12 month timeframe. Besides this one annual check-in, we would recommend you review your credit report quarterly if you don't intend to make any major purchases such as a house or a car in the next 6 months. Why is constant monitoring this important? We'll give you five reasons:

1) Make the unknown known

Did you cancel that magazine subscription? Did you take care of the utility bill before you moved? Such small details aren't that small in the grand scheme things when it comes to your credit. If these bills were substantial there is a chance that your creditor reported the delinquency to 1 or all 3 bureaus. Sometimes they settle with a collection agency and someone from the agency will be banging down your door so to speak. So, what do you do if you notice a collection activity or other delinquencies on your account? You call up the agency associated and get it fixed right away. You settle or pay it as fast as possible. The effect these blotches will have on your credit will reduce with time. But, without careful monitoring you might've never caught it in the first place.

2) Employment opportunities

In todays tight job market, employers are getting to pick and choose who they hire on the basis of several criteria. One of these is your credit score. Is it fair? The answer is - it doesn't matter. The employers are doing it and its your job to present the best possible picture you can of yourself not just in the interview but also in your financial report card.

3) Error resolution

Sometimes, you will see stuff on your report that doesn't belong there. Whether its an item that doesn't belong to you or something that you already took care of, you need to clear this up again. Call the creditor in question and try to figure out the source of the item. Keep written records of all conversations you have. Also, request a confirmation via email or snail mail of all communication. This will serve as proof if you need it later.