It is estimated that 40 million Americans will encounter a situation where they will have to deal with a credit bureau over an error on their credit report. Additionally, many Americans do not know, nor do they understand how to deal with a debt collector as a result of an error on their credit report.

Credit reports contain information about where a consumer live, how they pay their bills, and whether they have been sued or arrested, or have filed for bankruptcy. Consumer reporting companies sell the information contain in this file (credit report), to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.

The Fair Credit Reporting Act (FCRA) gives you the right to dispute incomplete, inaccurate, and accurate information in your credit report. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy and privacy of information in the files of the nation’s consumer reporting companies.

Good credit is important, now and in the future. In most cases, it takes seven years for accurate, negative information to be deleted from a credit report. Bankruptcy information takes even longer to be deleted—10 years.

Know What Creditors Look for on Credit Reports
Understanding what types of information most creditors evaluate is important. Your credit report is a key part of your credit score, but it is not the only factor. You get points for other things like:

  • Your bill-paying history
  • How many accounts you have and what kind
  • Late payments
  • Longevity of accounts
  • The unused portions of lines of credit
  • Collections actions
  • Outstanding debt