Loanio

Know your credit!

We all make mistakes, but when it comes to your credit report, a simple or small error can have a big impact. In fact, one small error is more than enough to drag down your FICO score and could even prevent you from getting a loan in the future. It is very important to monitor your credit report and score on a regular basis to spot any errors that occur. This will enable you to take quick action to fix any damage that has been caused before it can affect you adversely. Here are the steps you need to take to fix a mistake on your credit report.

1. File a Dispute.

This is done through the actual credit bureau. Since there are three different major reporting agencies, you may need to monitor all three to see if all of your reports are being affected. Each one will have to be dealt with separately, especially if the error appears on all three reports. In many cases, it may take 60 days or more for something to show up on a report, so if you do spot an error, you will need to keep monitoring your other reports as well.

All three bureaus now offer the ability to file a dispute online, or you can file it by phone or through regular mail, depending on your preference. You will need to select the reason for your dispute and provide the correct information if necessary. Expect to wait up to 45 days for a response one way or the other.

2. Contact Creditor Directly.

If your dispute is denied and you are certain that there is still an error on your report, you can contact the creditor directly. Keep a record of all communications and send a copy of everything you send to a creditor to the three major reporting agencies as well. Always use registered mail when you contact a creditor, since they will need to respond to you within 45 days to remain compliant.

If you do not hear back within that time frame, you will need to contact the reporting agencies to update them on the status of the dispute. In many cases if the creditor has not responded within that time frame, the agencies will simply remove the error.

3. Know Your Rights.

It is a very good idea to review the Fair Credit Debt Collections Protection Act so that you are aware of your rights when it comes to dealing with creditors, reporting agencies and collection agencies. The information contained in this act will assist you in determining your further course of action if you cannot get the error removed from your report.

With diligence, you can protect your credit rating from adverse affects due to errors, but it is up to you to make sure that they are taken care of promptly. If you are not currently monitoring your credit reports, you may want to consider doing so, especially if you plan on applying for a loan within the next 180 days.

Photo Credits: 1

Originally posted 2008-10-13 05:18:27. Republished by Blog Post Promoter

• Loanio Roundup - Wall Street Crisis and the Resilient Dollar /caption] Welcome to the second edition of the Loanio Roundup. This edition focuses heavily on the national economy and peer-to-peer lending news. We hope you enjoy pursuing through the links below. Leave a comment and tell us what you think - we'd love to hear your views on the Wall......
• Handling Debt Collection Phone Calls /caption] If you are late on a bill, or more than one bill, then you are probably beginning to receive collection calls from people who want payments from you. You may find yourself in the middle of what is essentially a recurring nightmare of callers who are absolutely insatiable and......
• Is Some Debt Good For Your Credit? /caption] There is no doubt about this, first of all: Getting into debt is more than capable of getting you into trouble. Although there is definitely a large downside to debt, borrowing money can also do you some good. Some debt is actually good for your credit, but only if......
• Do You Need a Money Manager? /caption] If your idea of organizing your finances is throwing a receipt in a big pile, you may want to consider the benefits of hiring a money manager. There is a new trend in the financial world where daily money managers are becoming very popular, and for many consumers, they......
• Personal Budget Planning /caption] The key to your financial success in life is your own personal money management skills. Your personal money management practices make up your own personal method of reaching both your goals and your dreams. No one likes the idea of personal budget planning, but you will never know if......

• Sarasota Bankruptcy Attorney Tips Off About Big 3 Credit Reporting Agencies! Sarasota bankruptcy attorney offers great advice about avoiding common bankruptcy reporting errors with Big 3 credit reporting agencies . [/caption] Big 3 credit reporting agencies Equifax, Transunion & Experian commonly (maybe intentionally) commit reporting errors. When it comes to (your) bankruptcy, you cannot afford to have the BIG 3 screw......
• How To Fix A Mistake On Your Credit Report. Whether someone alerts you to it or not, sometimes mistakes show up on your credit report. And while I have not had any major things come up, I have had credit lines (and even an old car loan!) show as still being open when in fact they had been closed......
• What everyone should know about personal finance You hear people talking about how personal finance should be taught in school. So I got to wondering, what are the things that everyone should know about personal finance? Here's my list, in no particular order. Everyone should know how to... • Choose & open a checking and savings account.......
• How to Resolve Credit Bureau Reporting Errors A couple months ago my wife and I started a passive search for a new home.  We are looking to downgrade to save a bit on the mortgage, and have more money each month to put towards meeting our aggressive savings goals.  When starting the house hunting process it is......
• Why you Need to Check your Credit Report Now Be safe - Check you Credit Report Often. At a time when credit is drying up, and it's getting harder to get a loan for a car, home, and when consumer lines of credit are harder to come by, it is imperative that we keep track of our credit......