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Your credit report is one of the most important documents in your life.
You do not want to take a chance that it contains errors that could stop you from obtaining a loan or even a new job.
An error can be as simple as a misspelling or as serious as reflecting an incorrect account. Any errors should be disputed immediately.

Accurate consumer credit information is protected by the federal Fair Credit Reporting Act (FCRA) and followed by the three consumer reporting companies: Experian, TransUnion and Equifax. "Your Access to Free Credit Reports" can be found at

www.ftc.gov/credit. Keep current with your information and request your free credit report copy at least once every 12 months.

If you do not know what is on your credit report, any errors that are there may lower your FICO score. This term refers to the mathematical equation lenders use to evaluate their risk when lending you money. FICO scores range between a low of 300 and a high of 850 and measures your credit merit. (Want to know more about FICO? Go to www.creditscoring.com

A worthy credit goal is to keep your FICO score as high as possible.
If you find an error that may be lowering your score, the next step is to request an investigation. This can be best accomplished on-line or by certified mail (return receipt requested), and sent to all three reporting companies.

Here are some guidelines to fixing errors on a credit report:

Organize Your Documentation

When you have determined the error gather documentation to prove your claim. Remember, any disputed information that cannot be verified by the creditor must be deleted from your report by the credit bureau. The burden of proof is not only on you but on the creditor as well.

Required Information

* Complete name, address, social security number and date of birth

* If you have moved in the past two years, provide a previous address.

* Name the company in error and provide an account number

* Describe the error in question

* Explain your correction of the disputed item

* Clearly state your intention that the error be deleted or amended

* Enclose copies of all support documents that prove your position

Other Notifications

* Contact the creditor who provided the incorrect information.

* Include copies of your letter and support documentation.

* Clearly state that you are disputing an item'. From this point on, the creditor should add a 'notice of dispute' in your information when they report again to the credit agencies.

* If the disputed charge is with a local business, also send copies to your local Better Business Bureau.

What Happens Next?

* Patience, because it may take a couple of months to find out if you won your case.

* If your information is found to be inaccurate, the creditor in question must then notify all the credit reporting agencies of the errors.

* The credit reporting agencies will then correct or delete the errors.

* If your dispute is not resolved in your favor, you can ask the credit reporting agencies to include your version of the dispute with any future reports. When your report is read in the future, you will have a chance to explain your side of the disagreement.

When Do I Need Legal Help?

* If you are the victim of identity theft.

* If your claim is not resolved to your satisfaction and you fear serious repercussions.

Contact the NACA (National Association of Consumer Advocates) for legal assistance at www.naca.net.

Learn more about this author, Diane Quinn .
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