How Do You Know if Your Credit Score is Wrong?

No matter how hard we may try to avoid it, our credit scores are always going to follow us around. Taking into consideration the impact that your credit score has on your life, it is a good idea to know what your scores is, and to take action to bring it up if it is on the lower side of the credit score spectrum. It seems almost like one minor financial mistake can have repercussions that could haunt you for years. It is usually easy enough to get back on course after most financial mistakes. But how do you go about finding out if your credit score is correct or not?

Here is a step-by-step guide to help you find out if your credit score is correct…

Step One – Get Your Credit Report

You cannot find out if your score is right if you don’t know what your score is. To get all the details you need, it is important to pull a copy of your credit report. The major credit bureaus are required by law to provide consumers with at least one copy of their full credit report each year. If you have pulled your report within the last 12 months, you can pay a small fee to get a fresh copy. Remember, though, that each of the major credit bureaus uses different information and calculations to determine your score. But if you do find something that is inaccurate on one of your reports, you will know that your current credit score is not correct. You should get copies of all three of the major credit bureau reports to make a proper determination.

Step Two – Check Everything

Once you get your credit report it is important to take a methodical approach to checking all the entries in your report. The entries will break down information about loans and lines of credit that you have. If you spot a loan that you never applied for, you will know immediately that something is wrong. Make note of these types of occurrences. You should also look for any notes of late payments and make sure they are correct. You can contact the lenders to get these types of mistakes resolved, and that brings us to the next step.

Step Three – Contact Creditors

Before you officially file a credit report dispute with the credit bureau, contact the creditor. Many times these types of mistakes can be ironed out with a few phone calls and a bit of persistence. However, there are times when the creditors will not be easy to work with, and that’s when it is time to move on to step number four.

Step Four – File a Claim of Dispute

The three major credit bureaus (Experian, Equifax and TransUnion) allow you to use their websites to file disputes. It is usually better to make a phone call to these bureaus to discuss your issue. Take notes of who you spoke with, the information they gave you and be sure to use certified mail for any hard copy correspondence between you and the bureau. Credit bureaus have 30 days to determine the validity of any disputes that are filed. If your error does not get omitted from your credit report, you may need to make another phone call to the bureau. If another call does not provide the results you hoped for, you may want to discuss your options with an attorney who specializes in these types of matters.

Taking care of errors on your credit report is not always easy, but being as your credit score is so important, it is good to take as much action as necessary to get errors off of your credit report when you are able to.

Luann Abel posted at 2015-2-11 Category: Financial Tips