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Importance Of Checking Your Credit Report

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How much do you know about your credit report? A credit report in a sense is a summary of all the borrowings you have made. The credit score is then calculated based on the information included in the credit report.

An important thing you need to know is that these credit bureaus are dependent on lenders to provide information which is included in the credit report. All the lenders do not always provide correct information. Mistakes are made such as claiming that you still haven’t paid off that loan that you know has been paid off years ago. Any such errors on your credit report will affect your credit score negatively. This is why it’s important to regularly check your credit reports. In order to boost your credit score, you need to get these errors in your credit report fixed. Here is how you should go about fixing these credit report errors. If you have a bad credit history or score you can find it difficult to lend money.

Get Your Report

The good news is that you do not need to pay for a credit report. You can check your credit report easily online.

Check for Mistakes

Once you have downloaded the credit report, go through it carefully. You need to ensure that all the accounts listed on the credit report belong to you and every single account shows the right amount. Pay special attention to items that are marked unpaid or late. In short, you need to make sure that everything listed in your credit report is true. Your credit report might also include negative items such as late payments older than 7 years. In most such cases, these negative items should not be a part of your credit report after a period of 7 to 10 years.

Get Ready to Dispute the Errors

If you discover any mistakes on the credit report, it is time for you to get in touch with the respective bureau to dispute those errors. All the bureaus offer an online form on their websites that can be used for filing a dispute. You also have the option of sending a letter to the bureau outlining the details of the error along with a request to fix the error. Along with your letter, do not forget to attach documents for supporting your claim as well as a copy of the credit report.

It’s Time to Wait

The credit bureaus are required to reply to you within 30 days. If the bureau finds that your credit report had an error, they should correct it and you should get a free updated credit report. The bureau will also provide the same information to the lender who has made the mistake. This information will also be shared with the other bureaus.

You also have other options to keep a track of your credit score for free. There are services such as Credit Karma that allow you to access your credit score along with the information on which the score is based. This allows you to keep an eye on your credit score all year round and spot any errors right away.

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