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While there are some obvious reasons to make a fuss about your credit score, there are few reasons to ignore it. After all, if you want to buy a home or get a car loan, you’ll need a high credit score and solid credit history. A low credit score can also negatively impact you when renting an apartment or applying for certain jobs.
However, your score isn’t the only detail you need to pay attention to. You should also keep an eye on your credit report. This is a document that lists your formal credit history, including your open accounts, outstanding balances, and payments made.
Reports and scores are intricately intertwined. Bad information on your credit report due to fraud or misinformation can easily cause your credit score to plummet. Similarly, a clear credit report with only truthful (and positive) information can help boost your credit score to a higher level.
That’s why you should get a free copy of your credit report every year from all three credit bureaus: Experian, Equifax, and TransUnion. Luckily, this part is easy to do through AnnualCreditReport.com.
How to dispute information on your credit report
Once you have a copy of your credit report from all three bureaus, you should go over all the details and make sure they are correct. Inaccuracies that may be included in the report include:
Mistakes regarding name or personal information
Account that doesn’t belong to you
Accounts of people with names similar to yours
Closed account is reported as open
Incorrectly reporting late payments
Account is listed multiple times
Account balance is incorrect
Account credit limit is incorrect
Thanks to the Fair Credit Reporting Act (FCRA), both credit bureaus and information providers are responsible for correcting incorrect information on your credit report. This means that if a particular retailer or bank reports an account or incorrect balance that does not belong to you, both the credit bureau and the retailer or bank will need to work together to resolve the issue. Masu.
If you find any errors, please take the next steps immediately.
Report incorrect information to credit reporting agencies
The first step to take is to notify the credit bureaus of the mistake. Keep in mind that not all credit bureaus may have the same information. You must notify us of the error in writing, taking special care to include important details about the error in the appropriate documentation. The Federal Trade Commission (FTC) also provides sample letters that you can use if you need assistance.
Keep in mind that credit bureaus typically have 30 days to investigate your claim and respond to you. We must also transfer the information you submit to the provider with which we originally shared the information.
Inform the informant of the mistake
It is also necessary to provide the company that reported the incorrect information with a copy of the documentation proving that the error occurred. Be sure to include all details necessary to prove your claim and copies of any supporting documents. The FTC provides another sample dispute letter that you can use in this case.
Keep an eye on your credit report updates
Generally, the credit reporting agency must notify you in writing of the outcome of your case. Additionally, if your dispute results in permanent changes, we are legally required to provide you with another copy of your credit report, free of charge.
You can also ask the credit bureau to send correction notices to anyone who requested your credit report within the past six months. You can also have someone who requested an amended version of your credit report for employment-related reasons send you an updated copy.
value one’s credit
While the above steps may sound tedious, it’s important to understand how incorrect information on your credit report can cost you. For example, if your report lists inaccurate late payments, your credit score could plummet even though it’s not your fault. Also, if you have accounts on your credit report that don’t belong to you, it could indicate a bigger problem, like outright identity theft.
Fortunately, the small amount of time it takes to dispute items on your credit report can actually pay off big. After all, clearing out negative information should immediately stop lowering your score.
However, it’s also important to note that only false negative information can be removed from your credit report. Harmful information that is true must remain in the report until a sufficient amount of time has passed. Generally, negative information and reports can stay on your credit report for up to seven years, and bankruptcies can stay on your report for 10 years.
conclusion
Errors happen all the time, and you might never discover them unless you find them yourself. In addition to staying on top of your credit report, it can be helpful to sign up for a free service that keeps you up to date on new accounts in your name and changes in your credit score. CreditKarma.com and CreditSesame.com are two similar free services with these features, so both are worth checking out.
