How to Fix Your Credit Report
A mistake on your credit report can cost you a lot of money and make it harder for you to get the financing you need. It is important to check your credit report regularly so you can spot any reporting errors before they hurt you financially. Even a small error can make a big difference, so it is vital to check your credit report at least once a year. Check your credit well in advance of any planned events such as buying a new home or getting a car loan. Since it can take some time to repair your credit report, give yourself at least a couple of months to get things corrected before you need to use your credit.
The first step, of course, is to order your credit report from the credit bureau – or order a 3 in 1 credit report so you can see your credit information from all three credit bureaus. You can order your credit report online for free.
Once you obtain your credit report, look at each item very carefully. Start with your personal information. Is your address correct? Are you shown as living in a place you have never lived? Is your name spelled correctly? Is your place of employment properly listed?
Now, take a look at the credit entries. Are they all yours? It is not uncommon for there to be mistakes such as a loan that is not yours, or missed payments shown that you actually paid on time. These kinds of errors can really hurt your score, so be sure that each item is completely correct. If there is a problem with any of the items, you can contact the credit bureau directly and tell them it needs to be fixed. Once they have your request, they have 30 days to fix the problem or prove that it is correct. When you fix your credit report this way it can help to improve your credit score and lower the cost of financing or even help you qualify for a loan in the first place. Take the time to fix your credit report, you will be glad you did.