Credit reports - how accurate are they?

We all know the importance of credit reports. You can't apply for any kind of financing, without the finance provider logging into their Equifax account, and viewing your credit score.
When the result is bad, because you either have low points, or some bad credit incidents, you've no chance for your application to be approved.
Having said all that, and agreeing with the importance a credit report plays in securing any form of credit, a question arises: how actually this report is?
Knowing how easily is to make clerical mistakes, or accept incorrect entries and records into personal files, it's more than possible that our credit records are somewhat inaccurate.
According to the consumer laws, you're entitled to ask for a copy of your credit record, and in case of any mistakes, request it to be corrected. The problem is, who's got the time to periodically check their credit file?
One possible solution would be to request a copy of your credit file, and update it before applying for finance.
This way, your chances to secure the cash you need will be so much greater!