Lesson 4 of 5

Reading your credit report for errors

You're entitled to a free copy of your credit report from each of the three major bureaus (Equifax, Experian, TransUnion) every week, permanently, through AnnualCreditReport.com -- the only site authorized for this by federal law. It's worth checking at least a few times a year, and definitely before applying for anything large like a mortgage. When you read it, check for: accounts you don't recognize (a potential sign of identity theft), incorrect late payments on accounts you actually paid on time, balances that don't match what you actually owe, and accounts that should have been closed but still show as open. Any of these can be actively hurting your score for no legitimate reason. If you find an error, dispute it directly with the bureau reporting it, in writing, with any documentation you have. Bureaus are legally required to investigate disputes, typically within 30 days. This is worth doing even for a small discrepancy -- errors compound the same way legitimate factors do, and they cost you nothing to challenge.