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How to Report an Error on Your Credit Report

Title-Subject: How To Report An Error On Your Credit Report

Have you been turned down for a loan recently? Have you applied for store credit and been refused? Did you really want that car and find out that because of your 'credit score' that they would have to require an unreasonable down payment? 

Credit reports are designed to help businesses evaluate the risk factor in giving you money or valuable products on a line of credit. 

The Fair Credit Reporting Act promotes the accuracy, fairness and privacy of information in the files of the nation's credit reporting agencies.  The act is enforced with regard to the consumer's rights and requiring new responsibilities for the credit reporting agencies. 

For example, a reporting agency must give you a copy of your report and they must provide a list of every inquiry about your credit report within the last year. 

The agencies collect data on personal identification (name, address, social security number, current employer, etc), payment histories with all current and closed lines of credit that details how much you owe, when you've paid on time and what, if any have been reported to a collection agency. 

The final two items are all inquiries that have been made on your credit report as well as anything that is considered a matter of public record such as bankruptcies, foreclosures and tax liens. 

To repair or report errors on your credit report, you must obtain a copy of your personal report and score. The reports themselves are not uniform from company to company. 

Experian may not list all the data of Equifax and vice versa. So, be sure to obtain credit history reports from the same company as the creditor who turned down your application.  In some states, that may require a small fee, but after September 1, 2005 all states will have to be in compliance with providing a free credit report. 

Once you have the report, verify the information.  Every report is also scored. Scoring is the system that creditors use to determine your credit experience. These scores are valid for all three companies and are uniform in value. 

Credit scores range from 375 to 900 points, but those numbers mean little on their own. A score of 650 or better usually indicates a very good credit history. Scores between 620 and 650 are considered average, while scores below 620 may prevent a person from getting a loan. If they do receive one, it is likely one with prohibitive interest attached. 

If you look at all the information on your credit report and it's correct, then you are faced with having to improve either your payment history, lower the number of debts. 

If the score is low because you possess very little credit history, investing in a secured credit card can help generate good feedback to your credit report or a co-signer who can provide the creditor with a good credit history as security for your lack of one. 

Inaccurate information, however, such as reported late payments that you disagree with or a listing for a debt that is not yours is repairable.  Some companies offer debt consolidation or credit repair. Before getting involved with either type, be sure you thoroughly check out the company to avoid scams. 

Doing the credit repair on your own is simple enough. Write a letter, detailing the inaccuracy to the reporting company. Send the letter and copies (copies only) of any documents supporting your claim to the credit-reporting agency. Some agencies allow you to do this online through their websites

Author-Bio: John Simpson works in software development. A few years ago, he got in trouble with credit card debts.  Now he's written a series of articles explaining how he recovered, and repaired his credit. Find out how to repair your credit. Discover why a good credit report is vital to your financial future, and how to make it the best  http://www.credit-repair-101.com/