Credit worthiness is an inescapable part or our identities in this modern era, for better or worse. The information listed in our reports has a direct bearing on the amount of money we pay for the things we want or need. Follow these simple and cost-free steps to ensure your report is accurate!
1
Get a Credit Report!
There is no shortage of places to turn to for a copy of your credit report. But if you want it for FREE, the options narrow considerably. There are 2 primary ways. One is to follow up with a credit denial. The written denial you receive after you are turned down for a car loan, credit card, or sometimes employment, is required to list the reasons for the denial and what reporting bureau the information was obtained from. You are entitled (by law) to a copy of that report, and only have to request it according to the specific directions you receive in the denial (usually call a certain number or visit a particular web site).
The other way is to visit www.annualcreditreport.com, or call 1-877-322-8228. After a verification process you will be able to view up to three reports, one for each of the three major bureaus. By accessing the online website you will have immediate access to the reports. If you call in, the reports will be mailed to you usually within about 10-14 days.
2
Review for Accuracy!
Once you have the report, you want to be sure of two things. One, that the negative information listed is at a minimum, and two, that positive information is listed as much as possible! Negative information that is over 7 years old (meaning 7 years since you made a payment or otherwise acknowledged the debt) can usually be deleted, unless it involves a bankruptcy or tax debt. You should also make sure that accounts which are paid off appear accurately. Positive information can remain on your report for longer than 7 years, and you should make sure it does! Accounts which are paid-as-agreed can also be indicated as such on your report- "slow pays" and "no pays" are not the only entries that can be listed on your report!
Primarily, you want to be aware of exactly what is wrong on your report, so you can move on to the next step.
3
Dispute!
As mentioned above, you want to "dispute" any entry on your report which is inaccurate, too old, or otherwise not reflecting your true payment history on a particular account. You initiate a dispute by following the directions each reporting bureau provides. An important thing to note is that the bureaus do not verify with each other what information is listed about you. If you do a dispute with one bureau, the information contained on the other bureaus' reports will not automatically change. You may need to conduct separate disputes with each of the major bureaus (Experian, Equifax, and Transunion are easily the largest and most widely used). Another very important requirement is that you follow the specific steps indicated for each bureau when disputing the information on their reports. Failing to follow their instructions will lead to a delay or even a rejection of your dispute. If you have evidence that shows you are correct (such as proof of payment), send copies!
4
Follow Up!
Finally, follow through with the investigation. The credit bureau may not agree with you, and if they receive information from the creditor which validates the debt, it may not come off your report. The fact of the matter is, however, that millions of Americans do have negative information on their reports that is NOT supposed to be there. That information is costing them...make sure it doesn't cost YOU too!
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