A few years ago, a law was passed that said that you are able to get one free copy of your credit report every year. This applies to all three of the major credit bureaus. But the thing that mystifies me is why so few people are taking advantage of this.
I think the reason is because not everyone realizes that ones credit report contains more inaccurate data that you can shake a stick at. Who knows how many errors it contains, but chances are great that your report contains errors. This is due in large part to the massive amount of data that the credit agencies need to store for each and every consumer and business on the planet. This is compounded by the fact that one lenders reported to TransUnion last year and has changed contracts and is now reporting to Equifax this year.
So think about it all consumers and all businesses, past and present, times the number of open accounts that each of them currently has and has had during their lifetime. This amounts to several BILLION records that they need to keep track of. If only 1% of that data is in error, that still means that over a million records are wrong in their database. Now compare that to the studies that indicate that up to 30% of that data contains errors, and you can see why this is a huge problem.
But something that most people are not in tune with is that it is THEIR responsibility to get those errors corrected. The errors do not correct themselves, and will never get corrected if you do not initiate action to get them corrected. One of the things that compounds this problem even more is that you need to dispute that error with each of the three credit bureaus Equifax, Trans Union, and Experian because they do not share data between them.
Now the thing that results by having inaccurate data in your credit history profile in that your credit score is not calculated correctly. Your credit score, sometimes also known as a FICO score, is a number that the credit bureaus have come up with as a quick way to gauge your credit worthiness. Although your credit score may be higher than it should be based on these errors, chances are greater that your credit score is worse than it should be.
So how do you get that fixed? You need to take action and take that action now without delay. Get a copy of your credit report from each of the three major credit bureaus, and then go over it with a fine tooth comb to find negative information and inaccurate information. Maybe you had a period of time where you were going through a rough time or were unemployed, where you got behind on your bills that will be reflected there. But if you have taken care of that debt in the meantime, chances are good that the creditor will not be able or willing to PROVE this, and will go with your dispute.
What happens when you dispute something is that the credit bureau has 30 days in which to either verify the information, or to remove it. If it cannot be verified, then they have a legal obligation to remove it. So for an account that has been paid off for 3 or 4 years, what incentive is there for the lender to verify that information? There is none, and chances are good that the negative information will be removed.
Then there is the stuff that is REALLY wrong, and you have every right to request that your credit report reflect accurate information. The procedure is exactly the same file a dispute with the credit bureau stating the facts, and they have 30 days to either get that information verified or to remove it.
When your credit history report is finally the way it should be looking, then your credit score will be as high as it can be, which is what you wanted to do in the first place!
Jon is a computer engineer who maintain a variety of web sites based on his knowledge and experience. For more information about Raising Your Credit Score, please visit his web site at
Improve Your Credit Score.
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