Credit Reports: What You Should Know
Categories: Credit & Debit
Written By: Jill Brennan
Every single person in the US is suffering or will suffer from the consequences of the recent credit crunch. Regardless of any A plus credit history, everyone will be affected by this credit crunch. Therefore, checking your credit report and monitoring it on a regular basis is of utmost importance.
Financial institutions, particularly banks are looking for reasons to raise interest rates or lower credit limit. If you make any delays in making payments, your creditors may use that as a reason to increase your interest rates or lower your credit limit. So it is important that your report does not show inconsistency of any kind.
Without you being aware of the fact, mistakes are often made by the creditors while reporting to the credit bureaus. In the past, there have been mistakes in reporting payment histories, loan amounts and other personal information. Your chances of getting a loan in the future may decrease if such mistakes damage your credit report.
Checking credit reports on a regular basis is the best defense. You are entitled to get one free report from each of the three credit bureaus annually. Though it does not give you access to your credit score, but allow you to view your true credit report.
Any inconsistency in the credit report should be resolved as soon as possible. Immediately contact the credit bureau. Online forms are available which you can fill, but if you write a letter giving your contact information, details of the dispute, your reasons for contesting and a request to correct the information.
The letter that you send to the credit bureau must have record proving your dispute attached with it. Attach a copy of your credit report with incorrect information highlighted, copies of statements or any other relevant documents. Dispatch the letter using certified mail with a return request receipt.
You must contact the creditor at once after you have contacted the credit bureau. This can be done by sending the copies of the same documents that you attached wit the letter to the credit bureau and a cover letter stating your dispute. You must also inform them that you have notified the credit bureau.
It is important that everyone monitor their credit report. If you are considering making a large purchase, like a home or car, you may consider opting for a credit monitoring service that will alert you if there are any changes in your credit report or score.
