How to Correct Information on Your Credit Report

Do you know if all of the information in your credit report is correct? If it isn't, you could pay thousands of dollars more in interest on a new mortgage, credit card, or bank loan. To get a copy of your credit reports (you have three reports, one from each credit bureau), you can order free copies once each year at www.annualcreditreport.com. Or you can order copies for a fee any time at one of the credit bureau websites:

• www.Experian.com
• www.Equifax.com
• www.TransUnion.com

What to do if you find an error on your credit reports

If any of the information in your reports is wrong, you can dispute the error by filling out a dispute form at the credit agency websites. Once you submit your dispute, the credit bureau will investigate the information and, if they determine that the data is false, will remove it from your report. If they cannot ascertain whether or not the information is viable, they will not remove it. In this case, you can ask the bureau to include a statement in your report specifying that you dispute the incorrect information; that way potential lenders will know that you believe the negative data is inaccurate.

What to do if the error is the result of identity theft

Sometimes the erroneous data your find in your credit report may be the result of fraud or identity theft. If this is the case, you need to take immediate action to protect your credit from further damage. Contact one of the credit bureaus as soon as possible and ask for a 90-day fraud alert to be placed in your file. The bureau you contact will notify the other two on your behalf. The alert will inform creditors that you suspect you've been a victim of identity theft. They, in turn, will contact you directly before opening a new account in your name or making any changes to your existing accounts (i.e. address changes or credit line increases).

Monitor your credit report regularly

Whether you're checking for errors or fraud in any form, it's important to regularly monitor your credit reports. All three credit agencies offer credit monitoring services which will alert you if any significant changes occur in your credit file.