The website of the U.S. Federal Trade Commission provides information on how to get free credit reports from the three major credit-reporting companies. It's worth getting those reports and checking them for inaccurate information that could negatively impact your credit score. Not disputing such information could cause you to pay more for loans and credit cards or prevent you from getting a job.
Credit Checks
Credit-reporting companies provide information in your credit file to lenders, employers, insurers and others. That information is used to determine your creditworthiness and to evaluate how well you've managed your financial affairs. For example, a potential employer may check your credit report if you apply for a job in which you would handle financial transactions. Therefore, you should dispute any inaccurate information in your credit files that indicates you made late payments or that you exceeded a credit limit. That incorrect data could suggest to an employer that you're irresponsible when handling money matters. An MSN Money article titled "How Bad Credit Can Cost You a Job" also notes that a 2006 survey by the Society for Human Resource Management found that 43 percent of its members ran credit checks on some or all of their job applicants.
Scoring Models
Different scoring models are used to evaluate a person's creditworthiness, but they have many similarities. A Bankrate.com article titled "What is a Credit Score" notes that scoring models place more emphasis on some financial factors than others. Payment history generally receives the most attention from creditors, and it can make up as much as 35 percent of your credit score. Therefore, not disputing inaccurate account delinquencies on a credit report can lower your overall score. You also should verify that account limits are accurately listed. Thirty percent of your score can be impacted by how much of your credit lines you use. It may appear you're maxing out credit cards and lower your score if your account limits are reported to be lower than they are.
Credit History
Dispute a date pertaining to when you opened an account if it makes it appear you've had an account for a shorter time than you have. The length of time people maintain accounts in good standing can affect their credit scores. A person who doesn't have a lengthy credit history may have a more difficult time getting approved for loans and credit cards. Creditors and lenders tend to view lengthy credit histories in good standing more favorably, which often results in better loan and credit terms with lower interest rates.
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