Errors on your credit report...What to do?

Learn how to obtain a copy of your credit report and how to correct errors on it. This will help you improve your credit score.

Credit reports contain your payment history and rate your financial solvency. This information is used to calculate your FICO credit score, meaning the level of risk you represent to a creditor.

In addition, creditors, employers, insurers and other companies purchase these reports to determine:

• What amount of money they can lend you or not
• What interest rate will you be charged
• If you pay your bills on time
• If you have been sued
• If you have ever filed for bankruptcy

Once a year you can request a copy from each company through Annualcreditreport.com (in English). Now, what happens if you find an error on your credit report. What should you do? Who to call?

If you find errors on your credit report, use a sample letter to report the errors. Then, send the letter (along with supporting documentation) to the following entities: Credit reporting companies. Find contact information for all three companies on their pages: Equifax, Experian and TransUnion. Information providers. They are your bank, credit card company, or other organization that provided the credit reporting agency with the inaccurate information. If this process is too complicated for you, call Debt Freedom USA at 1-800-854-3030, with more than 11 years helping the Hispanic community in the United States with debt and bad credit problems.

Some financial advisors and consumer advocacy organizations recommend checking your credit report periodically.

New errors in credit report

If errors continue to be reported on your credit report after you have disputed them in writing, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).

The Importance of your credit report

With a good credit history it can be easier to get a job, apartment or even a credit card. However, establishing and maintaining good credit requires discipline and planning.