It is a growing problem that is happening in the background.
Let's face it: Most of us only check our credit reports once we want a loan, but insurance companies and even employers use them to set your rates when deciding to offer you a job.
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Consumer Reports recently looked at the types of complaints filed with the Consumer Financial Protection Bureau and found nearly half of those complaints center around errors on credit reports.
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The areas could include loans listed as active, even if they've been paid off, someone else's information on your report, or late payments listed incorrectly.
Your credit report can be accessed weekly from the three credit reporting agencies, and if you find a mistake, there are ways to fix those issues before they cost you money.
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"Your best bet is to compile all the information that you have, whether it is credit card statements or banking statements, anything to make your claim, as well as a letter. Write a letter to each credit reporting agency explaining what the error is, pull that information together and make copies of it, and then send it certified mail to make sure those companies get it," Lisa Gill with Consumer Reports said.
If that doesn't work, you can file a complaint with the Consumer Financial Protection Bureau, and the next step is legal action.
You can get a free copy of your credit report on the Annual Credit Report website. It is good practice to check your credit report at least once a month.
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