Your Credit Report Score Has Errors, What To Do About It

It probably comes as no surprise to most people that "somewhere" there is a credit report on them that knows everything they ever did, good and bad, financially. Unfortunately, this is where their knowledge stops though, and not knowing the real scoop about how this really works is actually hurting them.

There are actually three major credit reporting agencies, which are Equifax, TransUnion and Experian. To explain the problem, let me start by saying that these companies compete with each other and do not share information amongst themselves. Now let me say some lenders report to one of them while other creditors report to another one, and the bigger ticket lenders such as your mortgage company may report to two or even all three of them.

But it gets even more complex. Again, they are in business to make a profit, so they want to get as many lenders reporting to them as possible. As such, they have "specials" to entice lenders to come to them, so Mastercard may have report to Experian last year but now reports to TransUnion, Discover reported to Equifax last year and now reports to Experian, and so on. This change occurs all the time on a regular basis.

Are you starting to see where a problem could (and does) occur? What happens is that not one of these credit reporting agencies really has a complete and accurate credit picture about you. Further, when a creditor of yours who reported to one agency that you were past due and then switches to another credit reporting agency, the first credit reporting agency continues to report you as being past due on that account because they never get corrected information.

Research and studies have found that a majority, a large majority of the US population have errors in their credit reports with one or more of these three agencies. The overall impact of these errors is that when the credit bureau calculates your credit score, it is almost certainly lower than it should really be. This in turn means that you are not getting the best interest rate on your credit cards, car loans, and mortgage, and this can also have similar negative effects in other parts of your financial life.

The only way this ever gets resolved is if you dispute it. There are right ways and wrong ways to dispute inaccurate information, because there are a lot of people who are disputing negative information that really is accurate in the hopes that it will just go away. This is an unfortunate fact for consumers who are trying to get truly incorrect information corrected or removed from their credit reports.

Having inaccurate information in your credit report is senseless and makes your credit score less than it should be. Getting these errors corrected is something you can do yourself and you do not need to pay a "credit fixer" company to do it for you, where they could even make it worse. The longer you wait to get this done, the worse off you are going to be, so make a point to get this done starting today.

Article Source: http://www.rightbiz.com

For more information and additional insights about Improve Your Credit Report Score as well as getting free copies of your credit reports, please visit our web site at www.credit-help-center.com

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