A credit report is used as evidence of your financial capabilities when applying for a loan, credit card, auto loan, or any other type of loan. When a mistake occurs in the record, it can damage a borrower’s credit score and lower his or her chances of getting financing.
While a person has full control over his or her credit history, mistakes can still occur. The Fair Credit Reporting Act, passed in 1970 to protect consumers, serves as a shield for borrowers from being unfairly harmed by arbitrary or inaccurate information appearing on the report. It ensures that no business or consumer is allowed to request a report without first verifying your identity. This law also ensures that credit reports are accurate.
Here is an example of what you might see if you do not follow these simple steps. You may receive a notification that there is an error in your credit report, but before you can contact the credit bureau about the error, you need to make sure that it is correct.
First, go online and search for a site that will allow you to request a free report and then submit the request. When you have the report in hand, take the time to review all of the information that appears and write down any items that you do not understand or feel should be removed from your report.
Next, you will need to gather up all of your credit card bills. These may include your balance, the interest rate, any late fees and penalties, any outstanding debt, and any other fees that you have not made payments on. You will then need to write a brief explanation of each of these items and why you are disputing them.
If a dispute is successfully submitted to the credit bureaus, they will verify the information and will usually correct the information within a week or two. If the errors are minor enough, you can submit the dispute and expect to see the changes within three days. However, if the error involves significant financial information, the process can take several weeks to resolve.
If the errors in your credit report are substantial, you should consider consulting a credit expert that can help you fix the problem. This can help you find errors that could have caused you major financial trouble and the ability to get approved for future credit, or loans.
As you can see, following these tips and techniques can help you avoid making mistakes on your credit reports. And prevent you from making further negative effects on your credit score.
It is important to remember, though, that not only will errors affect your credit score but that they can also cause you to pay more in debt in the future. That is why it is so important to get copies of your credit reports from all three of the credit bureaus every year.
You can obtain your credit reports in person or online. In person, you can request copies by calling the reporting companies directly and requesting them to send you one in the mail, or you can obtain a copy at your local credit bureau office by visiting their website and requesting a copy through the mail.
Once you have a copy of your report, it is important to review the information with the credit bureaus and request that they correct any errors on the report. This can help to save you from having to file for bankruptcy or to hire a credit repair specialist in the future.
Credit bureaus have guidelines that outline how many times they will investigate your report. They typically review it for accuracy at least once a year, but you can request your report as often as you like. This way, you can check the accuracy of the information and ensure that it is accurate in order to prevent future problems from arising.