Banks and creditors are checking credit histories more carefully than ever. They want to know whether you pay your bills on time and other financial details of your life that could affect their risk in extending you credit. Since testimony before a Congressional subcommittee revealed that up to 40 percent of all credit files contain one or more errors, you need to know there are none in your file. A mistake can have serious consequences when you apply for additional credit, try to take out a loan, rent an apartment, change jobs or buy a home.
1. To check your credit record, call a local bank, major department store, Chamber of Commerce or Better Business Bureau to find out what credit business serve your community. Contact one or more bureaus for a copy of the information in your file (before applying for a mortgage or large loan, check all bureaus). If you have been denied credit in the past 30 days, it's free. If you cannot decipher the information in your file, by law the bureau must explain it to you.
2. If you find an error, write to the credit bureau and ask it to reverify the information in dispute (send the letter by registered mail and keep a copy). The credit bureau must check disputed information with its source. For example, if your file contains a report from a department store that you paid your bill late twice last year, but you know you always paid on time, the credit bureau must double-check the report.
3. If the credit bureau can't verify the disputed information within thirty days, it must remove the mistaken information from your file. Ask the bank or card issuer to notify all credit agencies to whom it supplied incorrect information.
4. If the credit bureau investigates and finds it made no error, it is not required to remove the disputed information. However, you may write a challenge statement that must accompany future credit reports.
1. To check your credit record, call a local bank, major department store, Chamber of Commerce or Better Business Bureau to find out what credit business serve your community. Contact one or more bureaus for a copy of the information in your file (before applying for a mortgage or large loan, check all bureaus). If you have been denied credit in the past 30 days, it's free. If you cannot decipher the information in your file, by law the bureau must explain it to you.
2. If you find an error, write to the credit bureau and ask it to reverify the information in dispute (send the letter by registered mail and keep a copy). The credit bureau must check disputed information with its source. For example, if your file contains a report from a department store that you paid your bill late twice last year, but you know you always paid on time, the credit bureau must double-check the report.
3. If the credit bureau can't verify the disputed information within thirty days, it must remove the mistaken information from your file. Ask the bank or card issuer to notify all credit agencies to whom it supplied incorrect information.
4. If the credit bureau investigates and finds it made no error, it is not required to remove the disputed information. However, you may write a challenge statement that must accompany future credit reports.
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