Friday, June 10, 2011

Your Credit Report May Have Errors!

Repairing your credit can be difficult and often time consuming.  If you have filed for bankruptcy, you need to be even more fastidious in analyzing your credit report for potential errors after your discharge.  Companies or ways that promise to improve a credit score or, quick-fix efforts, are the most likely to backfire.  So be very cautious of any advice that claims to improve your credit score unrealistically fast.  If the dispute seems involved and you need counsel to help, please call a lawyer.

Remember that notice is essential in the dispute process, so all communications to and from the credit bureaus must be certified mail, return receipt requested.  Save your proofs and make a timeline.  Stay away from on-line disputes.  This dispute process requires a "real" paper trail.

Under Federal Law, you can check your credit report at  This central site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies:  Equifax, Experian and TransUntion.  This is the only free site.  Beware of other sites that claim to be free, even if "free" is contained in the name!

There are some things you can do now:

Check Your Credit Report - If you find errors on any of your reports, dispute them with the credit bureau and reporting agency.

Set Up Payment Reminder - Online banking reminders are a great way to stay current and avoid late fees.

Reduce the Amount of Debt You Owe - Begin to work on a budget.  Stop using your credit cards, now.  This is easier said than done, but reducing the amount that you owe is going to be a bigger notch on your belt than improving your credit score.  Use your credit report to make a list of all of your accounts and what interest rate they are charging now.  Then come up with a plan to pay down all of the debt in your budge first.

See this recent article for more information about the frequency of errors in credit reports today, including yours:

Lee M. Perlman, Esquire