Inaccuracies Can Add Debt to Your Credit Report

Credit problems can cause untold amounts of aggravation, not to mention large amounts of money. Right now some of you may be asking; how can bad credit cost me money? One way this happens is in the form of higher interest rates. If you are lucky enough to qualify for a loan you will almost certainly qualify at a higher rate. Higher rates equal higher payments. This is hard enough to accept if the damaged credit was due to your own negligence, however, it becomes unbearable if it is the result of inaccuracies and misinformation that have been placed on your report. At times the inaccuracies have been so great that additional amounts of debt were actually added to an individual's credit report. At other times closed lines of credit are listed as open or accounts may be wrongly listed as slow pays. All of these situations can work to damage credit that may have taken years to build up. If you find yourself in a similar situation here are some helpful tips to consider.

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• Contact the credit bureaus in writing. There are 3 major credit reporting agencies. (Equifax, Experian, and Trans Union) Contact each of these companies and explain your situation. Tell them exactly what is wrong and exactly what needs to be corrected.
• Contact the creditor. Explain to them that information regarding your account with their company is showing up incorrectly on your credit report. Ask them to begin reporting the correct information.
• Keep accurate records of everything. Take notes of who you talked to, when you talked, and what was discussed. When written correspondence takes place then copies should be made of this as well. Any mail should be done with a certified receipt to show that it was received. This will all help to substantiate your story if there is any disputes in the future.
• Be persistent. Often times it is necessary to break through multiple layers of red tape before you get results. The benefit of correcting misinformation such as the removal of inaccurate debts should be a powerfully motivating force.
• Submit an explanation. If you are unsuccessful in getting the information changed you have the right to submit a written document explaining your position. This letter should go to all 3 reporting agencies and also to the creditor. By law the creditor must include this letter to the credit bureaus if they submit any further information.

Unfortunately, mistakes are going to happen on people's credit reports. However, it is to each individual to determine what's going to be done to ensure that their problems are fixed. Remember, you've worked too hard to let someone else increase your debts and damage your credit. Through persistence and hard work you can regain your healthy credit.

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About the author:

Mark Carney is a professional consultant with First American Debt Consolidation and Loans, a debt consolidation service specializing in financial education, credit counseling, and debt management services nationwide.