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  Credit Card Basics   Chapter 2: Credit reports, credit scores and you
Here's how to order and read your credit reports and how your credit score is affected by the reports.
 
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Fixing mistakes on your credit report

 

You do not send in the information that comprises your credit history -- your creditors do. However, you are responsible for the accuracy of the information contained in each of the three credit reports about your financial life.

Expect that there will be some problems. Statistics show that approximately 70 percent of all reports contain at least one error. These mistakes can sometimes cause you to be turned down for a loan or to be charged the highest interest rate on a credit card.

It's not difficult to get rid of mistakes, just time consuming. As the wheels of correction grind slowly, there may be weeks -- or even months -- of phone calls and exchanging of real mail or e-mail.

Steps to correct mistakes
There are standard procedures to get rid of mistakes on your credit report.

Report credit errors quickly. Even the smallest error could seriously dent your credit chances. If you find a mistake, send a separate letter to each agency where a mistake is found. Be sure to explain the situation in detail and include a copy of the credit report with the faulty information highlighted.

Any error that you find must be investigated by the credit reporting agency (Experian, Trans Union or Equifax) with the creditor who supplied the data. The credit reporting agency will remove from your credit report any errors a creditor admits are there. If you disagree with the findings, you can file a short statement in your record giving your side of the story. Future reports to creditors must include this statement or a summary of it.

The Fair Credit Billing Act requires creditors to correct errors promptly and without damage to your credit rating.

What is an error?

The law defines a billing error as any charge:
-- Updated: May 1, 2006
 
Page | 1 | 2 |
 RESOURCES
How to establish first-time credit
15 must-know credit card terms
The true cost of paying the minimum
 CREDIT CARD BASICS
What is a credit score?
How finance charges are figured
FAQ on fees



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