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Being a credit card holder, you should keep in mind that the credit card companies consult your credit report to decide if you are worthy of any credit, and if yes, how much. The credit report is an important document and it may have errors. You may have to face consequences for the errors that are included in your credit report.
The information, which is included in your credit report, is about your occupation, pay, and standard of living. It is extremely important for the lender to gauge how timely you pay your bills. Other information about your legal dealings, may involve your getting arrested, sued and going bankrupt. The credit bureaus or the consumer-reporting agencies (CRA) are authorized, to sell this information to the different credit card agencies, under the Fair Credit Reporting Act.
There are many ways to keep your credit report in check, and accurate, especially if you are considering a huge loan or a substantial increase in your credit card limit.
You can challenge your credit report
If you have been denied any loan, insurance, credit limit increase for your credit card or even fired on the basis of the report by the CRA, you are entitled to get the name, telephone number and the address of that CRA. You can get a copy of the report free, if you contact the CRA within 60 days of the denial. In case of any inaccuracies or disability, you can get free copy of the credit report and if you are unemployed and wish to look for a job within the next 60 days, you get a free copy of your credit repot for the year. This is an advantage, as it saves you $8 that the CRA may charge for the copy.
In case of errors, you are supposed to contact both the CRA as well as the information provider, that is, the bank or your other credit card companies. Make it a point to use your rights and remember it is your CRA as well the information provider?s job to correct all the inaccuracies.
Send in a written application to your CRA proving your position on what you think is wrong information along with the copies of supporting documents. Put down all the inaccuracies one by one in a clear manner and the correct information along with your complete name, address and other details. The nature of the dispute and the correct information should be completely mentioned. Make sure that your letter reaches the CRA by certified mail, and retain the receipt of delivery with you, just in case. Keep a copy of the dispute letter and supporting documents with you.
The CRA is supposed to reinvestigate the facts within 30 days of receiving your mail and they take necessary action by informing the information provider, which could be your bank, the credit card company or an insurance agency. The information should also be sent to the institution that denied your application.
The action that should be taken includes: removal of the disputed information and putting the correct information in its place. Once all the disputes get cleared, make it a point to keep a check on all the details of your credit report. Add all the missing information that is necessary.
This is important as it ensures that none of the credit card companies deny credit to any of its credit card holders, or a prospective customer, on the basis of a wrong report.
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