A new FTC study claims that 1 out of every 5 Americans has an error on his or her credit report. Many individuals don't even get the yearly free copy of their credit report that they are entitled to. This is easily obtained at annualcreditreport.com (NOT free creditreport.com). Examine the report and look for errors. Keep in mind, if you had a missed payment or an account went into collection and you have since paid it, the account will not go away. It is part of your history. However, if there is a mistake or, in the case of a paid collection account, if that item is showing a balance or there is an legitimate error, you have the legal right to dispute that error and get it revised. There are companies out there that would have you believe that they can get this done for your for a fee. It's usually a hefty fee. All of this can be done for free. There are three credit repositories, Trans Union, Equifax, and Experian. Simply right a letter to each of these agencies (their address is on the report) and include a copy of your photo ID. You'll get a response within a month and if you have a legitimate complaint, your issue should be resolved.
It's unfortunate that there are no laws forcing creditors and collection agencies to provide accurate information but there are laws that protect your right to correct it. It is up to you to monitor your credit to assure its accuracy and if you do that, you'll have better rates on loans, mortgages, insurance and any other credit related matter.
