There are plenty of things people do which help take care of their family.  We make sure the family car is safe to drive.  We spend time and money keeping our homes in good shape and well managed.  We make sure that our family is insured in case of illness or injury.

One area of a family’s financial well being that many have overlooked is their credit rating.  Having a good credit rating affects your family’s ability to borrow money. In addition, your credit score will affect how you are treated by potential employers, landlords, and insurance companies.

A recent law enacted by Congress allows consumers to order a free copy of their credit report.  The Fair and Accurate Credit Transactions Act (FACTA) is gradually being phased in across the U.S.  All U.S. consumers will be able to order their free credit report by September 1, 2005.  Many consumers in western states can already take advantage of FACTA.

According to Consumers Union, the nonprofit publisher of Consumer Reports magazine, there are several steps to reading your credit report:

1. Verify that all of the information about your identity is correct. Check to make sure there are no errors in your name, address, current employment and social security number, or in any other personal information such as your date of birth or the name of your spouse.
2. Make sure that debts charged to you are truly yours. Check to make sure that there are no accounts, debts, bankruptcies, tax liens or other judgments that do not belong to you or are still listed as open even though they have been resolved.
3. Make sure your payment history and balances are accurate.
4. Verify that errors you successfully disputed have been corrected.
5. Check that information is accurate and not misleading. Make sure that the status of your accounts is correct. Some accounts may be inaccurately marked as delinquent or in collections.
6. Make sure that your information reported by each of the three bureaus is complete and consistent.

If you find errors or incomplete information in your report, take action to correct your report as soon as possible.  Consumers Union recommends:

• Before you file a dispute with any consumer credit reporting agency, you should have and review a recent copy of your consumer credit report issued by that agency.
• You should be prepared to provide details such as the name of the "furnisher" who provided the information about the disputed item, the reasons for your dispute and copies of any documents or information to substantiate your claim.
• File your dispute in writing with the consumer credit reporting agency that issued the consumer credit report containing the error, send it "return receipt requested" and keep a copy of your letter and all documentation for your records. Do not send your original documents.
• Review your report from each of the three credit-reporting agencies at least once a year. An error-free report from one agency does not guarantee that the reports from the other agencies will be accurate.
• Make sure you follow up with all three agencies and any furnishers of information to the consumer credit reporting agencies to ensure the corrections have been made.
• Be aware that contesting an error and resolving credit problems takes time    and often a lot of effort. Be persistent and be patient.

This process may seem daunting,  but just as knowing that your home is safe, and your family’s health is insured, your confidence that your credit rating is secure will give you and your family peace of mind.

For more information, check out:

Consumers Union Credit Matters