Besides paying your bills regularly and on time, the single most important thing you can do so show that you are a good credit risk is to known what's in your credit report.

Studies have shown that many credit files contain errors that can harm your
credit rating, leading to rejections when you apply for loans, insurance or even a job. The errors range from simple human error to being mixed up with a similarly named person.

Its essential that you check your credit files and monitor your credit regularly in order to protect your good credit standing, even if you always pay your bills on time.

And if your credit needs improvement, checking your report will help you find any problems that can be cleared up. A correct credit report, paying your bills on time and the passage of time will ensure the highest scores.

1. Cleaner credit reports improve your FICO score.

2. Find errors in your credit report before they damage your credit rating.

3. Become aware of unauthorized activities which can be an early warning sign of identity theft.

4. Clear up errors in your credit file before applying for new credit cards or loans

5. Find out which credit companies have made inquiries on your credit file (too many inquiries can lower your score).

6. Close accounts you are no longer using and lower credit limits on
existing cards.

7. Improve your credit report so you can get lower interest rates on mortgages, car loans and credit cards.

8. Reduce your car insurance rates (some insurance companies base your
rates on FICO scores).

9. Know what a potential employer will see in your credit file if you are applying for a new job or promotion.

10. Your credit report is constantly changing and you are the person most interested in keeping it accurate and up-to-date.