You probably know there’s a credit report on you lurking out there somewhere and that its contents will have a big effect on your ability to get credit.
But did you know there are actually three credit reports with your name on them?
The three credit reporting agencies that have credit reports on you are Experian (http://experian.com), TransUnion (http://transunion.com) and Equifax (http://equifax.com).
How do they create your credit reports?
These three services get information from banks, department stores, credit card providers, mortgage companies and any other company that has granted you credit. If you’ve ever had a credit card, a mortgage, a personal loan or an auto loan, you can bet there’s information about it in the three credit reports. As you grow older and get credit from more sources, your credit report will grow accordingly. In fact, it’s not unusual that by the time you hit middle age, your credit report will be 10 or even 15 pages long.
Why to stay on top of your reports
It’s important that you stay on top of your credit report because the information it contains is what’s used to create your credit score. And your credit score is vitally important to your financial well being. In fact, if you have a low credit score, you may not be able to get any new credit at all – or even rent an apartment.
The three credit reporting agencies listed above are required by law to provide you with a copy of your credit report free once a year. If you need to see your report more often than that you will have to pay for it though it will probably only cost you around $13.
Is once a year enough?
You only need to see your credit report once a year unless something you’ve been denied credit and can’t understand why. In this case, you need to contact one of the credit reporting agencies immediately. When you do this, the agency is required by law to provide you with a free credit report even if you’ve already had your free report for the year.
How to get rid of bad information
While you can’t have accurate information removed from your report, you can dispute any information you believe is not accurate. You will need to write a letter to the three credit reporting agencies and ask for an investigation into any information you believe is incorrect. The letter should identify each item you dispute, why you’re disputing the item and the fact that you want the item(s) corrected or removed. You will need to include any supporting evidence you have such as copies of documents that support your position. Be sure to keep copies of all your correspondence with the three credit reporting agencies, as you may need to use it again in the future.
When you file a letter disputing an item, the services have 30 days to make an investigation. When it completes its investigation, it’s required to give you the results in writing along with a free copy of your report if the dispute results in any changes to it.