Your Credit Report Score Has Errors - Fix It Or Get Over It
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by: JayAnderson
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Most people probably know that there is a company somewhere that keeps track of their credit and provides a credit report to lenders when they request a loan. But unfortunately, that is typically the extent of their knowledge, and even worse, what they don't know can actually hurt them in the long run.
Equifax, Experian, and TransUnion are the three major credit reporting companies and they think they know everything about you. But keep in mind they compete with each other, with the result being that they do not share information. Some lenders report to one of them, while others report to another one, and some larger lenders such as your mortgage holder might report to two or even all three of them.
Now compound this scenario with even more complexity. Since they are in the business to make a profit, they are always trying to get more companies to report to them, and so lender "A" who used to report to Equifax switches next year to report to Experian, and Visa who used to report to TransUnion now reports to only Equifax. This changes all the time, every year and even every month.
You may be starting to see how and where errors are introduced into your credit report. No single credit agency has the whole credit picture on you, which is why your credit score differs at each agency. Even worse, when Visa reported your very overdue bill last year and now Visa reports to a different agency, that first agency will keep that very overdue bill on file forever, because they are never notified that you satisfied it and are no longer past due.
Research and studies have found that a majority, a large majority of the US population have errors in their credit reports with one or more of these three agencies. The overall impact of these errors is that when the credit bureau calculates your credit score, it is almost certainly lower than it should really be. This in turn means that you are not getting the best interest rate on your credit cards, car loans, and mortgage, and this can also have similar negative effects in other parts of your financial life.
The credit reporting system does not include an auto-correction routine, which means that all of these errors will never be corrected until someone disputes them, and the only person who can dispute them is you. There is a right way and a wrong way to dispute the inaccurate information, and you need to do it the right way to avoid having your dispute thrown out as being frivolous. You see, there are many people disputing negative information in their credit reports but that information is actually accurate, and they are simply hoping that the information will be removed via their dispute. Unfortunately, this ties up the system for people who are disputing genuine errors.
Having inaccurate information in your credit report is senseless and makes your credit score less than it should be. Getting these errors corrected is something you can do yourself and you do not need to pay a "credit fixer" company to do it for you, where they could even make it worse. The longer you wait to get this done, the worse off you are going to be, so make a point to get this done starting today.
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For more insights and additional information about Improve Your Credit Report Score as well as getting free copies of your credit reports, please visit our web site at http://www.credit-help-center.com
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