Why Your Credit Score Is Probably Wrong And What To Do About It

Whether you like it or not, you have a credit score.since you undoubtedly have a DIFFERENT credit
And equally distasteful is the fact that you have veryscore at each credit bureau! Yes it really is as simple
little say-so into what your credit score is. Actually, thatas that, and yes, you should be concerned.
is not true, despite the fact that most people wouldYou have rights and one of those rights is that the
believe that. The biggest reason that most peopledata that the credit bureaus keep on you is accurate
believe that is because they see the big three creditand reflects the truth. And yes, the law even
bureaus (Experian, TransUnion, and Equifax) as bigrecognizes that there can sometimes be "extenuating
profit-motivated conglomerates whose job it is tocircumstances", and while most consumers do not
make your life miserable when you are applying forrealize it, you also have the right to have a 100 word
credit or a loan.statement included in any credit report that is
To a certain degree, you could say that is true butrequested. If you missed two months worth of
there is more to the story than that. You see, thesepayments because you fell ill to beri-beri or something
credit reporting agencies all have to follow rules thatand are now caught up, by all means add a statement
have been setup. The unfortunate part is that they canabout that to your credit report!
also play dumb, which they do frequently, with theUpon reading your credit report, you may also find
attitude of "we do not MAKE the news, we onlyaccounts listed that you know nothing about. You may
report it". Where all of this is going is the fact that thehave just discovered that you are a victim of identity
credit report of the MAJORITY of consumers thattheft, one of the fastest growing crimes of this
these companies are reporting on contain ERRORS.century. To find out more about identity theft and how
Yes, this is a known fact, or at least it is a fact if youto protect yourself from it, you may want to visit
follow this industry and understand what they areProtect Yourself From Identity Theft for more
doing and how easy it is for errors to creep into theirinformation.
systems. It is not necessarily a lack of quality control, itTake the time to get a copy of your credit report, a
is simply a matter of the tremendous volume of dataseparate copy of it from each of the three credit
they deal with. Consider keeping records on about 300bureaus, and then go through it with a microscope if
million (or more) consumers and businesses, and ifyou need to. Identify each and every item that is not
each one only has had 10 instances of credit or a loanright and then file a dispute with the credit bureau.
in their lifetimes, that is still well over 3 BILLION recordsThey are obligated by law to either verify the
they need to keep straight.information or to remove it from your credit report. But
So let's say that Citibank transposed some digits on ait does not happen automatically - YOU need to initiate
social security number when they reported to thethe dispute, and if you don't, the inaccurate data will
credit bureaus last month, and the transposed numberremain on your credit report until the cows come
turned out to be yours. Presto, now in the eyes of thehome.
credit bureau, you have a Citibank account, whichThe more positive things and fewer negative things
might even be past due, which lowers your creditthat are contained on your credit report, the higher
score. And the fact that some companies only reportyour credit score will become. And yes, that part IS
to one credit bureau, while others report to two ofautomatic.
them or all three just compounds the problem further,