You should have a good credit rating. After all, you pay all your bills on time and haven’t defaulted on any loans. When you apply for a loan, you get refused because of a poor credit rating. How could that happen? You did everything right and you can’t get a loan.

One possible explanation would be this- there is a mistake on your report, and it isn’t your fault.
It is suggested that each one of us review our credit reports occasionally, and this is why- the occasional mistake. If you find a mistake on your report, there are steps to follow that will help correct it. Sometimes a mistake can be as simple as someone with a similar Social Security Number having their information on your report, or it may be that a bill you paid off years ago is still listed as delinquent. Errors are rare, but they do occur.

The FCRA (Fair Credit Reporting Act) holds reporting agencies and individuals responsible to have and provide accurate information to the credit agencies.

To correct mistakes:

• Report mistakes to the proper consumer reporting agency. Make sure you do this in writing, and keep a copy for your own records. Disputes should be investigated in about 30 days.
• If the dispute is found to be accurate, it is reported to the credit agencies and the report is changed. This can take some time, and may require you to provide additional information.
• If the mistake is the fault of a creditor, send them the proper information, in writing. Make sure you keep a copy of all paperwork you send.
• When sending information, make sure you send it Certified Return Receipt. This will give you records of how and when you sent the information.
• Make sure you have the right information on where to mail your dispute and who to address it to. You want to make sure it gets to the right department, and the right person.
• When all is done, if your dispute is found to be legitimate, the agency that made the mistake will correct it. You can request them to send you a letter as proof of their actions to correct it. You may also request a letter from them to pass on to potential creditors.

Take control of your own credit report. Request a copy of each one annually, and look carefully at each part of it. If you find mistakes, do what it takes to make sure they are corrected.

Correcting mistakes on your credit report may take some time, work and patience, but in the long run it is worth it to clear it up and make it right. You future ability to get credit when needed may depend on it.