ROCKFORD, Ill. -- On March 1, consumers in 12 Midwest states can get their own credit reports for free. But what do these reports mean? Family Credit Counseling Service, a nationwide non-profit offering financial education and debt repayment programs, will offer free credit report analysis and tips on improving credit scores to consumers in the Midwest.

Michael McAuliffe, Family Credit Counseling Service's president, suggests the following tips to help improve your credit score after receiving your first free report.

Review reports with a fine-tooth comb. According to the U.S. Public Interest Research Group (PIRG), 29 percent of credit reports contain serious errors that could result in the denial of credit or other benefits. Thoroughly check your report to ensure all of the information is correct. Because credit reports are hard to decipher, consider getting help from an expert. Consumers in the Midwest can speak with Family Credit Counseling Service debt management counselors at no cost by calling 1-800-994-3328 to help determine what their reports mean and how they can improve their score.

Fix all mistakes. This may be a difficult and time consuming task, but it is critical to your family's financial health. To dispute an error, fill out a dispute form and mail it with a copy of your credit report to the credit bureau. Sample dispute letters can be downloaded at http://www.ftc.gov. After submitting a dispute to the credit bureau, the creditor has 30 days to respond or the information will be removed from the credit report.

Be frugal with credit card charges. Do not charge more than 50 percent of your total available credit limit per creditor. For example, if you have a $10,000 credit limit, do not charge more than $5,000. According to Fair, Isaac and Co. (FICO), the percentage of debt owed on credit cards counts for 30 percent of your credit score.

Make all bill payments on time. Payment history is 35 percent of your credit score. Know whom you owe and when the bills are due. Use online bill pay if this helps to keep you organized. Otherwise, mail bills 7-10 days in advance to ensure your bills are paid on time.

Think twice before closing accounts. Length of credit history is an important factor in your credit score. Older accounts can positively add to the score, even if you never use them. However, there should not be long spans of time between account activity - periodically use your credit card for expenses as long as you are able to pay them off the following month.

A few don'ts

Don't request credit reports from all three providers at the same time. Unless you are planning to apply for a loan in the near future, McAuliffe suggests requesting one report in March, another in July and another in December. That way, you can monitor your credit profile regularly throughout the year. Also, by scattering your requests, you will be able to spot any inconsistencies sooner.

Don't fall for scams. A request must be made in order to obtain your free credit report. You may obtain your credit report for free by visiting http://www.annualcreditreport.com or by calling 877-322-8228. Ignore e-mails, telephone calls or mail that tells you to call a number or send a mailer in to get a free report. Any kind of contact like this may be a ploy to get your personal financial data. Don't be fooled by Web sites with similar names. You may be asked to sign up for a membership, which is not necessary.

"It is becoming more important for consumers to know and understand their credit history so they can be better prepared for their financial futures," said McAuliffe. The information included on credit reports, such as whether you've been late making payments, whether you're borrowing close to the maximum allowed on your credit cards, and how timely you pay your monthly utility bills, can influence your ability to get a loan and the kind of insurance rates and premiums you'll be charged in the future.

Additionally, employers in some states consider credit reports when making hiring decisions.

For more information on building your credit score, contact a professional debt counselor at 1-800-994-3328 or visit www.familycredit.org and/or www.teachmeaboutcredit.org.

About Family Credit Counseling Service

Family Credit Counseling Service (FCCS) is a non-profit agency providing solutions for those seeking financial assistance. FCCS, headquartered in Rockford, Illinois, is one of the largest consumer credit counseling agencies and has been servicing consumers throughout the country for over ten years. FCCS's mission is to reduce the stress in consumer's lives through education, budget counseling and debt management.

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