Your credit score can be considered the all-important identifier of your ability to manage your debt and finances (See “Understanding Credit”). As you may know, managing debt is a gateway for larger credit opportunities---or traps. Your ability to manage debt is demonstrated in the information contained in your credit report, and your credit score is calculated based on the information you find in your credit report (See “Items That Affect your Credit”). It is equally important that the information contained in your credit file is accurate, up to date, and reported in a manner that is most beneficial to yourself as a consumer.

But what happens if you may have made some mistakes in the past and have since taken steps to improve your credit, but that remains unseen in your credit file? What if you have always managed your credit and finances wisely (examples can be found in “Developing Good Credit”), but you credit score is still low, or potential lenders somehow find you to be a credit risk? What if one of your current creditors has mistakenly reported you late? Do you know if they have?

In order to maximize your credit score, you need to be aware of what may or may not be included in your credit file. More importantly, you must resolved any potential mistakes reported to you credit file. This may include inaccuracies to the following:

• Payment history reported by your current creditors
• Credit accounts that should be reported to your credit file, but is not
• Accounts that belong to your spouse or child
• Collection accounts
• Non-credit account, personal identifying information
• Closed account reported by past creditors

Any inaccuracies in the above can alter your credit score, whether positively, or negatively. You should be well-acquainted with your credit file to ensure that it reflects your debt and/or credit management capabilities. You can obtain a copy of your credit report from any or all of the three Credit Reporting Agencies (CRAs). From there, you can find out what is actually being reported, and takes steps toward disputing inaccuracies, or resolving items that are accurate, but are negatively affecting your credit score. You may even be able to obtain full deletion of negative credit items by negotiating with creditors or collection agencies.

To further assist you in credit reporting resolutions, see the following articles:

• Getting Started with Credit Reporting Resolution
• Errors in your Credit Report
• Credit Report Error Resolution Process: Before You Begin
• Credit Report Error Resolution: Parts I-IV
• Collection Accounts
• Identity Theft



References:

Federal Trade Commission. Facts for Consumers: Building a Better Credit Report.

iGlobalFinancial.com. 2004 Consumer Credit Templates.

Federal Trade Commission. Facts for Consumers: Your Access to Free Credit Reports.

NeighborWorks America. Realizing the American Dream: A Manual for Homebuyers, 3rd Edition.