Examining Your Credit Report - A Must Before Applying For Credit Builder Credit Cards   by Graham Bailey

in Finance / Credit    (submitted 2012-01-05)

A person's credit score demonstrates how credit-worthy and financially responsible they really are. A credit report is normally sourced from the nation's three major credit bureaus, namely Transunion, Experian and Equifax. Nevertheless, the big three are not immune to errors and mistakes. On the advice of some credit professionals, the three big agencies incur error rates ranging from 20 to 30 percent, even though some of the mistakes may be nothing more than reporting the wrong month of a delinquent account. Nevertheless, any small credit report mistakes may still have a harmful effect on the person's credit score, which could result in the individual being rejected for an essential credit line. Here are five ways for disputing errors in your report.

Get Yourself a Copy Of Your Credit Report From The Big 3 Credit Agencies. First of all, get a copy of the credit report straight from all, or just of the three major credit agencies. Don't acquire the report from third-party agencies, because chances are you could be disputing mistakes or flaws that don't even exist. According to the US Fair Credit Reporting Act (FCRA), the big three credit agencies are responsible for putting straight or reducing any flaws and errors in your credit report. The FCRA therefore, enables you to directly contact these credit bureaus, and record your disputes or complaints.

Make Sure Each Report Is Not Over The 7-Year Limit. Once you have a copy of your credit report from the major credit agencies, compare all of the reports, and ensure that these are not past the 7 year limit for reporting of any mistakes or erroneous information. Additionally, check if the status and delinquency dates are correctly noted.

The Right Way To Dispute Any Mistakes You Find. Once you personally find any mistakes, you can challenge them through registering the dispute online, as well as by writing a letter to the specified credit agency. While sending your dispute on the Internet may be much faster, it only offers you a few options to explain your reasons. However, if sending a letter, ensure you limit the length to around 100 to 150 characters, or thirty words, to directly state your complaint. To file your complaint online, visit the agency's Web site, and look for the "Dispute" option. Enter your identifying details, and proceed to state the complaint. In sending a dispute in the mail, get the agency's official mailing address, normally situated towards the end of your report, and include your name and address, report number, as well as the numbers of the accounts you're complaining about.

When you receive a copy of your credit report from any agency, the it is usually given forty-five days to send the results of your complaint. If you paid for the report, the bureau in question will normally deliver this to you in about thirty days. If you spot any errors or flaws in your credit report, it's essential that you complain and dispute all the inaccuracies, and don't assume that something is correct, just because it's reported by one of the three big credit reporting agencies.

About the Author

Graham Bailey writes on many subjects, including financial subjects like the use of credit builder credit cards.