For many people it is hard enough to build a solid credit rating, but when errors creep into credit reports, it can make it nearly impossible to obtain credit when needed. How common are credit reporting errors? In one 2004 study, nearly 80% of credit reports reviewed had some sort of mistake that could have resulted in a refused loan or other denial of credit.

Obviously, your credit is something that you have to be proactive in monitoring. Fortunately, there are some tools available to help. The Fair Credit Reporting Act allows you the ability to dispute information on your credit report and ensure that it is removed in a timely manner if it turns out to be incorrect.

These challenges to your credit report involve an investigation by the credit reporting agency and the creditor involved. Within 30 to 45 days you should find out if the disputed item will be removed, changed or remain on your report.

Getting Your Free Report to Review for Errors

You can obtain a copy of your credit report each year from the three main credit reporting agencies, Experian, TransUnion and Equifax, by going to AnnualCreditReport.com. Federal law entitles you to one free report from each of these agencies, free of charge. You don't have to pay another agency to get this information, you can just request the report online and print it out.

Once you have your report, you should review it for any misinformation or inaccurate information. Most negative marks on your credit report will disappear after a certain number of years. If a report contains negative credit information that is more than seven years old, it may be a good idea to dispute it and see if you can have it removed.

You can file a dispute with the credit agency online, by phone or with a certified letter. Your credit report will have contact information for each of the three major credit reporting agencies. No matter which way you decide to dispute an issue, it is best to keep track of your efforts to correct the errors just in case the credit reporting agencies do not respond in a timely matter and additional efforts are required.

Related Resource:

How to fix credit report errors (Bankrate.com)