How to Fix an Error in Your Credit Report

It can be extremely aggravating to find an error in your credit report. But it can be damaging, too. An error in your credit report - whether caused by identity theft or a simple clerical error - has the potential to drastically affect your credit score. This means that your ability to get approved for a loan or receive a loan at a preferable interest rate could be affected. It is possible to repair your credit report and get a fresh credit score. Just follow these steps:

• Check your credit report annually: It's impossible to fix your credit report if you don't know there's an error. This will help you catch errors quickly and also will help prevent an error from affecting your ability to get approved for a mortgage. You may also want to consider paying - usually a small fee - to view your credit scores from each of the credit reporting agencies. That way, you'll know how likely you may be able to borrow money in the future.
• Seek help from a credit repair professional: Consumers can try to fix their credit reports on their own, but it can be a time consuming process. If you seek assistance from an expert in the industry, you'll have a third party working on your behalf, rather than you having to fit the time it takes to fix the report in your already hectic daily schedule. Services such as those provided by YourFreshCredit.com can, for a small fee, work directly with credit agencies to fix the error and, possibly, improve your credit score.
• Get documentation: You need to be able to prove that the error is, in fact, an error. This is why it's important to keep banks statements and other materials on file. Your credit report mending agency will need these materials as they go about the process of fixing your credit report.
• Know the rules: It is fully within your rights to view your credit report and report an error. But you may not remove an item in your report just because it reflects negatively on you. Only errors can be removed from a credit report; if you're concerned about damaging - but accurate - information, you might want to consider the assistance provided by a credit counselor or a debt consolidation service.
• Be patient: It can take time to repair your credit report. Depending on the type of error, it can involve identity theft, or it can be a simple clerical mistake. Your credit repair agency will work with the credit bureaus as well as the creditor listed on the error. This will result in a thorough repair of your credit report, and not simply a band-aid over the problem.
• Remain diligent: Now that your report has been fixed, your work isn't done. Be sure to review your credit reports at least once a year, and verify that all of the information is accurate. Pay your bills on time and practice smart spending and borrowing habits. This will ensure that your credit score stays high, and you're in control of your financial life.