Thursday, November 20, 2008

Managing your credit report

Do you know that over 36 percent of American consumers weakened with a low credit score? This is due to high hospital and medical bills. In today's world of finance you must manage your debt to maximize your buying power.

People with bad credit are charged high interest rates by banks and other finance companies. It's very important to maintain a good credit report to get any financial help. Sometimes even the good credit score is shown bad in the report due to some error. So you must obtain a copy of your credit report at least once a year.It will help you in two ways. First, you can check for identity theft and second to check if there was any mistake in the report. A report by U.S. Public Interest Research Group(PIRG) show that nearly one-third of all credit reports contain "errors".

Do you know what to do when you find a error on your credit report?

When you find a error in the report, first check to make sure that the mistakes are in fact errors. Then you will need to contact the credit bureaus. The bureaus have a specific procedure for dealing such mistakes. You will need to follow their instructions. Also you need to contact the companies that reported the error and ask them to correct your credit report. They will send a written notice for correction to the credit bureau.

After that keep contacting them to get updates on the investigation.

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