If you are trying to buy a house or car, you should find out exactly what's in your credit report and how to fix any errors or problems. Read on for the top 10 tips for monitoring and improving your credit.

1. You are entitled to one free credit report a year from the three credit bureaus. You are also entitled to a free copy of your report any time your credit application is denied.

2. Fraud and identity theft can severely impact your credit rating. One of the reasons it is important to monitor your credit is because of widespread problems with identity theft. Always report fraud immediately and ask for a fraud warning to be put in your credit file.

3. Errors and disputes may affect your credit score. Make sure to correct any errors you find on your credit report right away.

4. Paying bills late can have serious credit implications. If you consistently wait until you get a disconnect notice or final bill, creditors may turn you down.

5. Your debt to income ratio can affect your credit even if you pay all your bills on time. If you are carrying too much debt for your income level, creditors will be reluctant to extend additional credit.

6. Having excessive amounts of unused credit can hurt your chances of getting a loan. Creditors tend to think that you are saving all your credit for a large-scale shopping spree.

7. Co-signing loans can affect your credit. Be careful who you co-sign a loan for. If that person is untrustworthy and defaults on the loan, it will negatively impact your credit score.

8. Inquiring into your credit too often is problematic. Every time you apply for credit or ask for your credit report, the inquiry remains on your record for two years. If you have too many inquiries on your record, creditors tend to assume you are overextending yourself or trying to get additional credit to pay off previous debts.

9. The past two years are most important to many creditors. Current credit problems are far more problematic than a problem five or six years ago that you have since corrected.

10. All credit problems are not created equal. Large-scale loans such as student or automobile loans count more than problems with credit cards at a department store. Protect your credit by making sure you always pay these bills on time.