Did you know that more than 75% of credit
reports have inaccuracies on them, with 25% of those errors
being damaging enough to effect chances of credit and loan approval. To
ensure that all of your information is correct and current, get
a
copy of your credit report.
One typical error is the listing of someone
else on your credit file. This usually an accident. Another
major problem is when someone take one
your identity and opens up several credit accounts and
loans in your name. Over 16 million people were victims of
identity theft last year alone!
By law, any erroneous information on your credit report must be
removed. You will need to contact your Attorney General or your
state's consumer protection bureau to find out what the laws and
procedures are for your state. Also, credit agencies are
required to provide you with contact information for submitting a request for an
examination of bad
information.
Once you request is submitted, the credit reporting agency has
no more than thrity days to get back to you with a resolution.
All relevant info must be taken into consideration. Incorrect
information must be removed by the reporting bureau if it can
not be verified. They must then provide you with a free copy of
your credit report to confirm that the erroneous information has
been removed. You can also entitled and should request that an updated
copy of your credit report be sent to all parties that
have requested your file in the last year.
Make sure that any letter you send to any
credit reporting company are sent via certified mail and that
you save copies for your own personal records.
If the reporting bureaus investigation is not positive for you,
you are allowed to submit a 100-word explanation. This
explanation will be listed in your credit report, even though
the misinformation is still listed. This will help you reason
the negative marks on your file.
Be aware that it is possible for misinformation to get re-listed
on your credit file after it has already been removed. If this
happens, the reporting bureau is required by law to contact you
within 5 days of re-including the information. They must also
confirm with the reporting company to ensure that the data is
accurate.
Even if you have had errors corrected in
your report, it is a good idea to get a copy of your credit
report at least once a year. This will help ensure that the
information is not re-placed on your report and/or there is no
new information present that is incorrect.
Dealing with identity theft?
If you have even the slightest concern that you are a victim of identity theft, you need to
purchase a 3-in-1 credit report.
This type of credit report is the most comprehensive available,
with your information from each of the major credit bureaus. If
your assumption is right, you need to file a fraud alert with
the credit bureaus. When the creditors listing
the questionable activity receive the fraud alerts from the
credit reporting agencies, they are supposed to contact you
immediately to try and verify the account activity.
Some states will also allow you to freeze your credit report.
Meaning, no one can access your credit report. Some states may
also charge a fee for this.
