What to do if You Find an Error in Your Credit Report

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All consumers should check their credit reports at least once a year. This is especially important for those consumers who are planning on buying a home or applying for an auto loan. If you find an error in your credit report, it is vitally important to act fast. Whether you are a victim of identity theft or just a simple clerical error, that mistake could be affecting your credit score and, ultimately, your ability to qualify for an affordable mortgage interest rate or auto loan. If you find yourself in this situation, be sure to follow these steps:

• Keep an eye on your report: You can't spot an error in your credit report if you aren't checking it. Set a reminder in your calendar to check your credit report at least once a year. This will help you stay on track and monitor your credit effectively. You can view your credit report for free once a year, but if you want to check your credit score you will need to pay a small fee. It is advisable to check your score as well; that way you can determine your overall creditworthiness.
• Document the error: If you spot an error, find a way to prove it. This is one of the reasons it's so important to keep good records. If you close an account, get a letter saying that it is closed. Keep documents on file so, in the event of an error, you can efficiently prove it. A credit bureau will have a more difficult time fixing an error if you can't prove why it's wrong.
• Contact a third party for assistance: Consumers are permitted to contact the credit bureaus independently to remove errors from their credit reports, but it can take time and patience. Those consumers who are applying for a mortgage might not have the time to wait for the error to be fixed. This is one of the reasons so many consumers use services such as HelpCreditRating.com, where third-party experts use their established relationships with the credit bureaus to efficiently remove errors from credit reports and return credit scores to their rightful place. Remember that a third-party credit repair service cannot remove unflattering but accurate information from your account; only incorrect information can be removed.
• Take a deep breath: Consumers need to be patient through this process. It can be frustrating, which is why third parties are so useful in situations like this. Depending on your credit history and the type of error, whether it's fraud or a simple clerical problem, it might take a bit of time to repair your credit report. Be patient and be confident that your problem can be solved.
• Remain aware: Once your report is fixed and your score is repaired, you still need to practice smart habits. Check your credit report at least once a year, and seek the counsel of a professional if you encounter a problem. Your credit affects every big purchase you make as an adult, and it's your responsibility to guard your credit report and score.