Knowing your credit score and removing negative information from your credit report is the first step to improving your credit. The Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies {Equifax, Experian, and TransUnion} to provide you with a free copy of your credit report, at your request, once every 12 months.

What is a Credit Report?

A credit report includes information on where you live, how you pay your bills, and whether you have been sued, arrested, or filed for bankruptcy. Nationwide consumer reporting companies sell the information in your credit report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.

Why Do I Want My Credit Report?

You want a copy of your credit report to make sure the information is accurate. You should obtain and thoroughly review the accuracy of the information contained in your credit report before you apply for a loan or make a major purchase like a buying a house or car. You should also verify all information contained in your credit report is accurate and up-to-date before buying insurance or applying for a job.

Credit Reports & Identity Theft

Reviewing your credit report on a regular basis can help prevent against identity theft and fraud. Identity thieves may attempt to use your Social Security number, credit card numbers and / or drivers' license to commit fraud. Most commonly, identity thieves use your information to open a new credit card account in your name. Then, when they don't pay the bills, the delinquent account is reported on your credit report.

Fixing Your Credit Report

Under the FCRA, both the consumer reporting company and the information are responsible for correcting inaccurate information in your report. To take full advantage of your rights under this law, contact the consumer reporting company and the information provider immediately if you discover errors on your credit report.

Contact each credit bureau, in writing, stating what information you think is incorrect. Supply as much data possible that supports your claim. Never send the originals, make copies. The credit bureaus must investigate the items in question (usually within 30 days). All information you provide to the credit bureaus regarding your dispute will then be sent to the organization that originally provided the information to the credit bureaus.

Once the information provider receives notice of a dispute from the credit bureaus, it must investigate, review the relevant information, and report the results back to the credit bureaus. If the information provider finds the disputed information is inaccurate, it must notify all three credit bureaus so they can correct the information in your file.

The credit bureaus must provide you with the written results of a dispute and a free copy of your report if changes resulted from the investigation. This free credit report does not count as your annual free credit report under the FACT Act.

If an item is changed or deleted, the credit bureaus cannot put the disputed information back on your credit report unless the creditor verifies that it is accurate and complete. The credit bureaus also must send you written notice that includes the name, address, and phone number of the creditor providing the information.

Tell the creditor in writing that you dispute an item. Many creditors have a specific address for disputes. If the creditor reports the item to a credit bureau, it must include a notice of your dispute. If you are correct, the information is found to be inaccurate, the creditor cannot report it again.

How to order your Free Credit Report

You may order your reports from each of the three nationwide consumer reporting companies, Experian, Equifax & Transunion.

• EXPERIAN
  P.O. Box 2002
  Allen, Texas 75013
  (888) 397-3742
  http://www.experian.com

• EQUIFAX
  P.O. BOX 740241
  ATLANTA, GEORGIA, 30375
  (800) 378-2732
  http://www.equifax.com

• Trans Union
  P.O. BOX 1000
  CHESTER, PENNSYLVANIA 19022
  (800) 916-8800
  http://www.transunion.com

If you request your report online you should be able to access it immediately. If you order your report by phone, it will be processed and mailed to you within 15 days. If you order your report by mail, your request will usually be processed and mailed to you within 15 days of receipt.