When was the last time you saw a copy of your credit report? Do you know your credit score? Do you even know if it's good or bad?

If you can't answer these questions, you have some homework to do -- especially if you're planning to apply for a mortgage loan in the near future.

Here are some step-by-step instructions to help you obtain your credit reports, review them for accuracy, and correct any errors you come across.

Step 1 - Understand how your credit affects you.

When you apply for a home mortgage loan (or some other major purchase), you can be sure your credit will go under the microscope. Mortgage lenders will analyze your credit to find out what risk category you fall into.

When your credit score is high, your risk factor is low. In this scenario, you'll have a good chance of qualifying for a loan. But when the opposite is true -- low credit score and high risk factor -- you could have trouble obtaining a loan.

Credit reports are maintained by three credit reporting companies (sometimes called credit bureaus or agencies): Experian, Equifax and TransUnion. Your credit score is based on the information contained in these credit reports. Three agencies, three reports, three credit scores ... all about you!

Step 2 - Request copies of your credit report.

According to the Fair Credit Reporting Act (FCRA), you are entitled to one free credit report per year from each of the credit reporting companies -- Equifax, Experian, and TransUnion. To request your credit reports from all three companies, visit www.AnnualCreditReport.com, or call 1-877-322-8228.

Step 3 - Review your credit reports for errors.

Examine your credit reports closely for any errors or inaccuracies. Make sure your personal information is correct and up to date. Check for loans or lines of credit that aren't yours, as this could be an indication of credit fraud. Anything at all that seems out of place, write it down for further investigation.

Step 4 - Start the correction process immediately.

Under the Fair Credit Reporting Act (FCRA), credit reporting companies are responsible for correcting inaccurate or incomplete information in your credit report. So don't hesitate to exercise your rights under this law.

Visit the company's website to find instructions on how to begin the correction process. By law, each credit reporting company must publish their correction requirements:

http://www.experian.com/

http://www.transunion.com/

http://www.equifax.com/

Step 5 - Follow up thoroughly.

The credit reporting company will investigate your claim within 30 days of receiving it. But why wait? I recommend contacting them after 10 business days, at least to make sure they've received your correction request. Follow up regularly after that. Don't allow your issue to "slip through the cracks."

Step 6 - Continue your education.

If you believe your credit report contains errors, educate yourself on the correction process. This article provides a good overview, but an important issue like credit deserves a more complete education.