With Credit Reports, You're Guilty Until Proven Innocent

Your credit report includes information about your financial habits, like what credit or loan accounts you have, how much you owe, and if you've been paying on time. Your creditors report the information directly to credit bureaus - the companies who create and maintain your credit report. If the creditor says you were late on a payment, the late payment goes straight to your credit report, no questions asked. Since credit bureaus don't automatically check to make sure the information is right, checking for accuracy is up to you.

Your credit report information needs to correct because your future credit applications depend on it. When you make applications for credit cards and loans, your credit report is checked. Incorrect information could get your application denied.

How to make sure your information's right? Start by checking your credit report. Look through it and verify the information with your own records. If you find something that's wrong, dispute it with the credit bureau providing the report. They'll do an investigation and if the verdict is in your favor, the information will be removed.

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