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  • An accurate credit report is important, because a bad credit report can not only prevent you from getting a loan to buy such items as a house or a car, but it could mean higher interests on any money you can manage to borrow. It could also stop you from getting an apartment, job or anything else that requires a credit check to establish financial worthiness. Furthermore, a bad credit report could indicate that you've been the victim of identity theft, during which a thief has run up unpaid bills in your name.

    Obtaining a Credit Report

    You are entitled to a complimentary copy of your credit report once every 12 months (unless you've received a denial of credit -- then you can get another copy), per the Fair Credit Reporting Act of 1970. Visit the Federal Trade Commission (FTC) Website to either fill out an online request or call for a paper application.

    Fixing a Credit Report

    Once you receive a free credit report, if you find erroneous information, write a letter to the consumer credit bureau reporting the mistake, clearly stating your name and address and the item or items you're disputing. Also, mention exactly why you dispute that item, and attach copies of any documentation you have that support your claim to your letter. This could include receipts showing that you paid the debt, if you still have them. Finally, you must clearly state in your letter that you want that the disputed item corrected or removed, as appropriate. After you've written this letter, the credit bureau must investigate, normally within 30 days. They're also required to provide the information contained in your letter to the creditor with which the adverse information originated in order to investigate. When the consumer credit bureau has completed its investigation, you must be provided with the outcome, as well as another free credit report if your dispute resulted in any item or items being deleted or changed. The bureau also prohibited from including any disputed items resolved in your favor in your credit report. Even if your letter doesn't cause the disputed items to be changed or removed, still ask the credit bureau to include a copy of your letter in your credit report for other potential lenders to be aware that the adverse information may not be valid.

    Dealing with the Creditor

    Also write a letter disputing the adverse information to the lender with whom the debt originated. Include in it exactly the same information that you put in your letter to the credit bureau that reported it: your name and address, facts about why the information is incorrect, and copies of any documents you might have to refute the adverse information. After writing the letter to the creditor disputing the adverse information, the creditor has to advise the credit bureau of the disputed item or items, and if you turn out to be right, the creditor must remove the item or items from your account information and refrain from reporting it to any credit reporting agency again.

    Source:

    Disputing Credit Report Errors

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