People often think of credit reports like going to the dentist: they have to do it, but they don't like it. This is especially true for people who have had money problems in the past. However, it's important to know what's in your credit report because that's where the lender will get their information if you ever need a loan.
In the US, there are three major credit reporting services:
Equifax: PO Box 740241, Atlanta, GA 30374
Transunion's address is PO Box 2000, Chester, PA 19022
Experian: PO Box 2002, Allen, TX 75013
Your credit report has information about your credit cards, car loans, home loans, and other debts. It shows any payments that were late and how late they were, such as 30 days late, 60 days late, etc.
This information can be seen by any qualified lender, such as a bank, a mortgage lender, a credit card company, and other parties during legal proceedings.
The agencies that keep track of your credit do their best to keep accurate records, but mistakes can still end up on your report. This is one of the main reasons why you need to keep an eye on your credit report: if you don't fix these mistakes, they can hurt your finances.
Some of the most common mistakes are loans that have been paid back but still show as active and credit cards that have been cancelled for a long time but still show as active.
By getting copies of your reports from all three agencies, you can check them for mistakes or wrong information. They can, however, be fixed. You'll need proof of the mistake, which you'll need to send to the credit reporting service by registered mail along with the details of the mistake. Ask them to fix the data. By law, they have to look into any mistakes that are brought to their attention.
You can get one free copy of your credit report each year thanks to new laws. As long as you don't ask for more than one per year, you shouldn't have to pay for it.
