A credit report is a record of a person's personal borrowing history that is used to create a credit score that gauges the risk that person presents to borrowers. Having a high credit score makes a person more likely to be able to borrow money and may reduce the interest rates charged on borrowed money, so it's important to fix any errors that occur on a credit report.

Researching Errors

Improving a credit score generally means displaying sound financial habits and lowering debt, but if your credit report contains errors about your credit history you may be able to improve your score quickly by fixing these errors. If you order a credit report and notice a factual error, such as a missed debt payment that you actually made, it's important to dispute the error to get it taken off your record. The first thing to do if you notice an error on your credit report is to research the error and find as much financial documentation that supports your position as possible. For instance, if the report claims a missed payment on a certain date, try to find a check carbon copy for that payment in your checkbook and call the lender about the error. You want to be sure that the fact on the report is, in fact, an error.

Documentation

Documenting your financial transactions is extremely important for combating credit errors. If you don't have proof that certain financial transactions were made, it may be difficult for you to dispute errors made in a credit report. For this reason, keep detailed and organized files for all of your financial information to make it easier to research errors should the need arise. Making copies of financial documents and requesting extra copies of financial statements can be helpful. The more documentation you have at your disposal, the easier it will be to effectively dispute errors.

Disputing Errors

After gathering all of the necessary information about an error, you'll be ready to dispute it. Mail letters with documentation supporting your claim to the credit reporting agency and your creditors. You can make a dispute over the phone, but letters may be more effective since copies of financial information can be sent; following up a mailed dispute with a phone call can work well. If a creditor agrees to fix a credit reporting error, ask it to send you documentation confirming that the error was fixed. As you dispute the error, carry yourself in a businesslike manner and be prepared for a legal battle if necessary. It's also be a good idea to keep a log of the actions you take in disputing and fixing an error (for instance, you might record the dates and times of any phone calls and the general content of the conversation).

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