Q: I plan to buy a house and apply for my first mortgage this year. What do I need to do about my credit report and credit scorefi

-- B.M., Wainscott, N.Y.

A: You are wise to start to think about your credit report and credit score well in advance of applying for a mortgage. The earlier you start to review your information, the better shape you will be in when you actually apply for a mortgage.

As I have said many times, a credit report may be your most important piece of personal information. This document, combined with your credit score, will be used to evaluate whether you will be given a line of credit and at what rate.

Before your prospective lender examines the credit report, you should look at it to ensure accuracy. You can check it at www.equifax.com, www.transunion.com and www.experian.com.

With your credit report in hand, first confirm that the basic information contained (name, address, Social Security number, date of birth and employer) is correct. Next, check the category titled "Open Accounts." This section contains a history of all your past and current records. Check to see whether the open accounts, such as credit cards, merchant services or lines of credit, are ones you have originated. Accounts that have been opened without your consent may be indications that a thief has applied for and received credit in your name.

If you discover an inaccuracy, you will need to contact both the creditor and the credit bureau. The item may be an indication of fraud or a simple error. (Almost 25 percent of credit reports contain some type of mistake.) Each of the Web sites for the three credit bureaus explains the process for contesting inaccuracies or fraud.

Similarly, check your score at www.fico.com. Your score is a number between 300 and 850 that represents a snapshot of your credit history. It also compares your credit profile with other consumers to determine your credit-worthiness.

Your prospective lender will favorably view a higher score, as that means you are a lower risk. The higher your score, the increased likelihood of obtaining a loan with a lower interest rate.

Of course, the lower the interest rate, the less you pay each month for your mortgage payment. Good credit has a direct correlation to what your monthly out-of-pocket expenses will be.

Five factors determine your FICO score:

1. Whether you pay your bills on time

2. Whether you have outstanding debt

3. How long you have had credit

4. Whether you have recently applied for credit

5. Types of credit accounts you have

Go to www.fico.com and learn the fine points of how to develop the highest credit score possible.

With respect to your credit history and credit score, you might think if you always pay on time and pay your entire balance when due, you will have excellent credit. Though that seems logical, it may not be the case, especially if you have been the victim of identity theft. There is also the possibility that a creditor may make a mistake, accidentally attributing a negative transaction to your account.

You won't know unless you check. Don't delay. Check your credit report and credit score today.

Privacy expert Eric Gertler is the former president and CEO of Privista, an identity-theft protection and credit management company, and the author of "Prying Eyes" (Random House, 2004), a guide to protecting yourself from people who sell to you, snoop on you and steal from you. Visit his Web site at www.pryingeyesbook.com and submit your questions to pryingeyesbook@yahoo.com.

This story appeared in The Daily Herald on page E1.