In a world where your financial well-being is intimately tied to your credit score, it is very important that you check your credit report regularly for errors. This is because any existing errors could negatively affect your ability to not only access credit, but also your ability to conduct financial transactions in general. A bad credit score caused by an error in your credit report can affect your ability to get a loan, to rent property, and even your ability to secure a job.
Unfortunately, many people never find out that there are errors on their credit report until they apply for a loan or try to rent property and are turned down. By that time, it’s usually too late to take action! If you make an effort to check your credit score regularly, you are more likely to catch any possible errors early and get the chance to properly take steps to correct them beforehand.
An error in your credit report may be a simple reporting mistake, but it could also stem from something more serious such as identity theft. In such a case, it is HIGHLY recommended that you immediately take steps to correct the situation. Once you make a habit of checking your credit score regularly, you should pay attention to any negative changes that you don’t expect. Any such changes are usually a red flag that there may be an error on your credit report.
Under the Fair Credit Reporting Act, everyone has the right to dispute any possible errors in their credit report. If any genuine errors are discovered, you must contact all 3 credit bureaus and obtain copies of your credit report from each. Credit bureaus are obligated to have any errors removed as they are forbidden from reporting inaccurate, incomplete or false information.