You can get a free credit report from each of the three largest national credit bureaus,
Equifax, Experian and TransUnion. But because these companies gather your credit information
independently of each other, you may have three different credit reports. And when the consumer
group, USPIRG, took a look at credit reports, they found a surprising
70% had at least one error. Which means that no matter your reason for getting your free credit
report, it's important to check it carefully for errors or omissions.
So what's the cost of a small error in your free credit report? Most people tend to think of
their credit as either good or bad. But creditors can rate credit very precisely. And while a
little error probably won't get your auto loan or mortgage rejected, you may pay higher interest
rates because of it. Or if you're applying for insurance, most insurance companies will check
your credit and that small error could mean higher premiums. And maybe worse of all, if there's
an error in the report that your employer or potential employer sees, it could mean you get
passed over for a promotion or don't get hired because another equally qualified candidate had
a clean report.
If you find a mistake or omission in your free credit report you need to write the credit
bureau. Your letter should include copies of any documents that support your claim. And send
it by certified mail with the return receipt requested. The credit bureau is required to
investigate and resolve all serious disputes within 30 days.
If the credit bureau can't verify the information it must either be changed or removed.
After the bureau finishes its investigation it must report the results to you. And if there is
a correction, the bureau must also send you a free credit report. Also, at
your request, the credit bureau will notify anyone of the change who's received a copy of your
credit report in the last six months or if it was an employer, two years.
When looking for errors in your free credit report, remember that outdated information should
be removed. Most negative information except bankruptcies, aren't reported for more than seven
years. Bankruptcies can be reported for ten years. Public records information can be reported
until its statute of limitations runs out.
If you're not satisfied with the resolution of your dispute, you have the right to write a 100
word statement of your concerns. This statement will be included in future copies of your credit
report.
To get your free credit report and free 30 days of credit monitoring, please go to
free instant credit reports.
