by Elaina Wicks

Created on: January 14, 2009   Last Updated: February 02, 2010

In the current economic slump, many lenders are reluctant to offer loans to consumers. Underwriters are under extreme pressure by financial institutions to heavily scrutinize the credit history of potential buyers, as to avoid the "bad loans" that have caused the financial struggles of major corporations like AIG, Chrysler and GM. With this type of scrutiny in mind, do you know what is on your credit report?

Statistically, well over 50% of credit reports contain errors. Whether it be a misspelling, geographic inaccuracy or payment history discrepancy, every detail is vital. The duty of the three major credit bureaus (Experian, Equifax and TransUnion) is to document information, it is not their job to keep up with the validity of the details. Inaccuracies on your credit report can hinder you when it comes to obtaining your next car or mortgage loan.

So, what can you do? Under the "Fair and Accurate Credit Transactions Act," (FACTA) consumers have the right to dispute inaccurate information from their credit reports and are allowed one FREE credit report from each of the major reporting agencies per year. This allows consumers to thoroughly review the information contained in their report and allows them the opportunity to have any discrepancies investigated and/or removed by the reporting agency. For a small fee, you can also obtain your report and/or credit score from each individual reporting agency via their official website or through the mail.

ALL THREE REPORTS ON ONE WEBSITE

Annualcreditreport.com is an official website that consumers can use to view, download or have mailed, the credit reports from each of the major credit reporting agencies, free of charge. On this site, a consumer will be directed to a page that prompts them to enter brief personal information (name, birth date, social security number, etc.,) answer a few questions pertaining to their credit history and then once the information has been verified, offers the consumer access to the credit reports from each individual reporting agency.

INACCURATE INFORMATION, WHAT NOW?

If after thoroughly evaluating your credit report, you find any discrepancies, you have the right to dispute the inaccurate information with the appropriate reporting agency. Each reporting agency has an area on their website that allows you to file an online dispute. It is important to have your report number on hand for any disputes you wish to file. If you chose to send your dispute through the mail, each reporting agency

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