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Checking the accuracy of your credit report

By Andy Snyder
Published: Saturday, March 27th, 2010

The credit report is the most important financial document today. It contains all of the information a creditor needs to make a decision regarding a new credit for a person. If the credit history has been good enough, he will approve the new loan with a good interest rate.

If the credit history has been bad, the loan application might be rejected. The credit report will contain all kinds of information regarding the person including his name, addresses he has lived in, marital status and spouse’s name. It will also contain details regarding all the payments made in the past. There will be information regarding any late payments. It will contain details of all accounts and all credit a person has had and all the details regarding the payments to these credits.

Thus, the credit report holds all your essential financial information and hence, the key to your financial future. This credit report is prepared by three different agencies in the United States of America. These include Experian, Equifax and TransUnion. Each of these three agencies is required by law to provide you with a free credit report. Make use of this facility and obtain regular reports and keep yourself updated. The accuracy of this credit report is very important.

Mistakes can be made by anybody. There are a lot of chances that mistakes might be made on your credit report as well. In case such a mistake occurs and you do not notice it immediately, it will be noticed by the creditor the next time you request for a credit. This erroneous entry might cause some problem and you might be denied the loan. Thus, periodic checking of the credit report is a must.

However, it must be understood that bad credit history cannot be repaired or disputed as inaccurate information can be. Bad credit history can only be repaired by consistent and timely payments and some time. Pay your bills on time, reduce your credit card debt and spend wisely. Your credit score will improve.

To check the accuracy of the credit report, one should first obtain a credit report. An individual can get a credit report for free from the agencies. It is better to try for the report through government agencies as direct approach to the agency might cost some money.

Check all the information and make sure it is accurate. However, if you do find a discrepancy, write a letter requesting an investigation into the matter. Clearly mark the disputed entry. If you have any receipts, send in a copy with the letter. The agency has thirty days to conduct an investigation and reach a decision. The agency contacts the creditor and he must respond. If he is not able to and the agency is not able to prove the entry, it has to be deleted.

There are chances that the creditor does not agree to your side of the story. There is an option provided where you can write a statement explaining your side of the story and this will be permanently added to the credit entry.

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