So far so good, but there's more to top-notch credit, including some ideas that are not especially well known.

1. How do I get a free credit report?

The federal government says that when it comes to credit we all have basic rights. The credit-related laws now in place can be used to boost your credit standing -- but only if it deserves to be boosted.

It wasn't too long ago that credit reports were virtually impossible to get without a top-secret clearance and a super-duper decoder ring. Those days are gone. Under the Fair Credit Reporting Act you are absolutely entitled to see a copy of your credit report. In fact, you can get up to three free copies of your credit report in any 12 month period -- one from each of the three major credit reporting agencies.

Okay, so the government says you can get your credit report, but how do you do it? Easy. Go to AnnualCreditReport.com. Do NOT go anywhere else. Why? Because AnnualCreditReport.com was established as a byproduct of the Fair Credit Reporting Act. You can visit the site and no one can require that you join a credit protection program or buy any other products or services as a condition of what the government says is freely yours.

"Only one website," says the Federal Trade Commission, "is authorized to fill orders for the free annual credit report you are entitled to under law -- AnnualCreditReport.com. Other websites that claim to offer 'free credit reports,' 'free credit scores,' or 'free credit monitoring' are not part of the legally mandated free annual credit report program. In some cases, the 'free' product comes with strings attached. For example, some sites sign you up for a supposedly 'free' service that converts to one you have to pay for after a trial period. If you don't cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card."

Once on AnnualCreditReport.com it takes a few minutes to get your free report. Just answer a couple of questions and then hit the print button.

2. Are there other ways to get free credit reports?

Yes. As the Federal Trade Commission explains, "under federal law, you're also entitled to a free report if a company takes adverse action against you, like denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company.

"You're also entitled to one free report a year if you're unemployed and plan to look for a job within 60 days; if you're on welfare; or if your report is inaccurate because of fraud, including identity theft."

3. What about credit scores?

Credit scores are mathematical measures that compare your credit standing with all credit users. Lenders use credit scores as one of the standards they consider when granting a loan, however different lenders have different credit score requirements for individual loan products. In other words, a score of 720 may be great with one lender while another may offer the same mortgage product and identical rates if you score 690. This is one of the reasons it pays to shop around for mortgage loans.

Credit scores are not available on AnnualCreditReport.Com -- to learn more about the use of credit scores speak with lenders. What you'll usually find is that lenders will get credit scores from each of the three major credit reporting services and then use the middle number -- not an average of the three scores, but the score in the middle to rate your credit.

4. What if my credit report is wrong?

There are millions of credit reports that track trillions of transactions each year. In such a vast system no one should be surprised that errors occur; at the same time while errors may be understandable they may also be damaging. An error or two in your credit report can significantly decrease your credit standing and thus increase your interest cost for a mortgage, car loan and other forms of debt.

In general terms, you want to check your credit report for two problems: outdated items and factual errors.

Outdated items are typically entries more than seven years old, however there are a bunch of exceptions. Unpaid tax liens are retained forever, some bankruptcies are kept on reports for 10 years, and negotiated accounts can be retained for a decade.

Factual errors are different; they should never be on a credit report.

If you find a factual error contact the credit reporting agency (CRA). It may be possible to do this online, however you can also contact a CRA by mail, sending a letter by certified mail with a return receipt requested. The three major CRAs are:

• Equifax
• Experian
• Transunion

Why do you want a return receipt if you send in a correction by mail? Suppose you find a late payment for account which is not yours. Under the Fair Credit Billing Act you can write a letter to the credit reporting agency and they then have 30 days to acknowledge receipt of your complaint and 90 days to resolve the matter. When does the 30 day period begin? If you have a receipt from a certified letter you'll know for sure.

Beware of scammers who claim they can repair your credit file. First, legitimate late and missed payments belong on credit reports and will stay on credit reports as long as allowed. Second, some repair "strategies" are illegal. Third, some credit repair services are simply scams, their real goal is to get your Social Security number and credit data, information which is then re-sold to identity thieves. All in all, it's cheaper and easier to just pay bills on time and in full -- and to watch your credit report for errors and outdated items.

5. What about identity theft?

A really good reason to check credit reports regularly is to look for identity theft. Under the Fair and Accurate Credit Transactions Act (FACTA) you have certain rights if you suspect identity theft. According to the Federal Trade Commission those rights include:

• The right to place fraud alerts on your credit reports;
• The right to block businesses and credit bureaus from reporting information in their credit files that is a result of identity theft;
• The right to obtain from businesses information about accounts or transactions in their name that result from identity theft.

If you think you're an identity theft victim, contact credit reporting agencies, credit card companies or the business that you think is involved. Most will attempt to help you because identity theft is not only fraud, it also undermines the credit system which is central to businesses and the economy.

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Peter G. Miller is a syndicated real estate and personal finance columnist who appears in more than 90 newspapers. He writes a bi-monthly column exclusively for Mortgage Lenders Plus.com, an advertiser supported mortgage directory featuring home mortgage lenders nationwide for refinancing, second mortgages, and home loans.