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.

Equifax, Experian, and TransUnion are the three major credit reporting companies and they think they know everything about you. But keep in mind they compete with each other, with the result being that they do not share information. Some lenders report to one of them, while others report to another one, and some larger lenders such as your mortgage holder might report to two or even all three of them.

So far no news alerts but it gets worse. They are in business for profit, so they want to get as many lenders as possible to report to them for their customer's credit information. They occasionally have specials for lenders to switch to them, so Discover may have reported to Experian last year and this year they report to TransUnion, and your Exxon account may have reported to Experian last year and now reports to TransUnion. This type of change occurs on a very regular basis.

With this background information, are you starting to see where the problem occurs? First of all, there is not any single credit reporting agency that knows the WHOLE credit story behind you. Moreover, when Visa reported that overdue account last year and now is reporting to another company, that original company keeps on reporting that overdue account because the information is never corrected.

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.

There is no self-correct mechanism built into the system, and these errors will never be corrected unless YOU do it. There are right and wrong ways to get this information corrected and if you don't do it right, you could make it even worse. You need to make your dispute be legitimate, not frivolous. There are a lot of people out there with accurate negative information on their credit report who are disputing that information with the credit bureaus in the hopes that even though it is accurate, it will disappear. You on the other hand have a legitimate beef that you want incorrect information corrected.

Be aware that your credit report is very likely to have incorrect information being reported as fact about you. Then you can either just accept that fact and live with it, or more appropriately, find out what you need to do to get it corrected and get your credit score raised as a result. This is a do-it-yourself process, you do not need a "credit fixit company" to do it for you, since they cannot do anything that you cannot do yourself.

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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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