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Improve Your Credit Score by Identifying Errors in Your Credit Report

One of the first steps to improving your credit score is locate the problem areas.  To identify the problems in your credit report you first have to review a current report and find the individual trade-lines, accounts or other data that poses a problem.  This requires more than just obtaining your credit report and highlighting the inaccurate data.  Inaccurate data that is not causing your credit score to fall is of little importance unless you simply want your credit report to reflect the accurate data.
Credit Report Errors

It’s estimated that well over 25% of credit reports contain information that is wrong.  However, some of the information will not be impacting your credit score.  So the first step is to obtain a new credit report and find the problems that are pulling your credit score lower.

In order to find discrepancies in your credit report you will need to know what information should be in your credit report.  A credit report will contain your personal identifying information including your full name, social security number, birth date, previous addresses, and, possibly, your previous employers.  The report will then cover your credit accounts and history with items such as mortgage loans, car loans, credit cards and collection accounts. 

Following this data is any public records such as bankruptcy filings, liens or judgments.  A list of credit inquiries that covers any individual, business, or agency that has requested to see your credit report usually concludes the report basics.

Checking personal information is important but fixing those errors should have little to no impact on your credit score.  Finding errors in your credit history may be a little more difficult but this data is the primary driver of your credit score and by repairing or removing these items you will see the biggest improvement in your credit score.

Errors that should be reviewed and subsequently disputed with the credit reporting agency include:  all credit accounts listed that do not belong to you or are otherwise incorrect in their reporting, closed lines of credit that do not appear as closed, all balances should be accurate which includes the recording of current payments and balances, negative listings that are past the statue of limitations.

Inspecting your credit report for problem areas and errors is the first step to improving your credit and credit score.  By investigating and disputing questionable negative items on your report, or working with creditors, you may be able to improve your credit score significantly. A good credit repair firm will do this for you.

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