How to Get a Free Copy of Your Credit Report
& How to Dispute Inaccuracies
- Roger J

Clearly your credit information and credit score are among the most valuable assets you own. Incorrect information on your credit report can cost you literally hundreds of thousands of dollars just on your mortgage loan alone, not to mention car loans and other forms of credit as well as employment opportunities. Before you shop for a home loan make sure your credit report is up to date and accurately reflects your good credit standing.

Your credit information is compiled by credit bureaus, also known as credit reporting agencies. The three major credit bureaus that banks and lenders get their data from are Trans Union, Experian and Equifax. The data held about you can differ slightly between these companies depending on who your creditors report information to and how frequently. Hence is it crucial to find out what each of these bureaus is reporting on you, not just one.

These credit bureaus generate a credit score for you based on a complex model that takes into account many different aspects of your credit history and gives weight to different factors as they see fit. These do not always make sense to the lay person, but there is not much you can do about it except to change your habits based on what we know of these modeling systems. Normally a mortgage lender or bank will base it's credit decision on the middle of the three scores provided by the credit bureaus, though some will take the lower of two. These scores range from 350-850. What it takes to qualify for a mortgage loan or a better mortgage loan really varies between lenders and on the current economy.

The Fair Credit Reporting Act is the law that governs these credit bureaus and their responsibilities for reporting accurate information. Unfortunately erroneous and incorrect information can show up on your credit report for a number of reasons including mistaken identity, identity theft and mistakes or inaccurate information being reported by creditors. Under the law both the creditors and credit bureaus have a legal responsibility to ensure the data they report is accurate or correct it.

Getting A Free Copy Of Your Credit Report

You are entitled to a free copy of your credit report if you have been denied credit, insurance, or employment because of information supplied by a Credit Bureau. The Fair Credit Reporting Act dictates that the company you applied to must give you the Credit Bureau’s name, address, and telephone number. If you contact the Bureau for a copy of your report within 60 days of receiving a denial notice, the report is free. In addition, you’re entitled to one free copy of your report a year if you can prove that:

(1) you’re unemployed and plan to look for a job within 60 days
(2) you’re on welfare, or
(3) your report is inaccurate because of fraud.

Otherwise, a Credit Bureau may charge. It is worth noting that you have no right under the law to receive your credit score.
Contact information for the three major national credit bureaus is as follows:
 

Disputing Inaccuracies

 If there is erroneous or false information being reported on your credit report it is crucial to address it right away. There are companies including attorneys and credit repair companies that will offer to do this for you for a fee. However, most often if the information is genuinely incorrect you can easily have it amended yourself. Beware of some credit repair companies. Unfortunately some have a bad reputation for charging large amounts of money and not accomplishing anything. Corresponding in writing with the credit bureaus and creditors as some suggest can be an incredibly lengthy process.

Most often you do not have time for this and can still accomplish what you need by phone and fax machine. Call the credit bureaus directly to address and dispute and inaccurate information as soon as possible. The credit bureau then has the responsibility to investigate and verify the information that is being reported. You will also want to provide any supporting documents you can by fax that prove your case. This process can take several days to a week or more.

Be ready to follow up and go around in circles a few times before you get things cleaned up. However you will normally find that you can achieve the desired results without many roadblocks. The one type of 'credit repair' that does seem to often consistently offer good results in most cases is a 'Rapid Rescore' which can be done if you have supporting documentation or resolve collections and pay down balances. This normally runs a around a couple hundred dollars, however can be extremely effective if you need to increase your credit score by a few points to qualify for a loan.

     Do not put up with mistakes on your credit report as they will cost you dearly. If a lender or proposed creditor indicates there is negative information on your credit report make sure you act quickly to resolve it so that you may be approved for the best mortgage loan terms possible.