Credit Report Errors: A credit report agency can report negative information for seven years, and bankruptcy information for ten years.  Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out.

If you find credit report errors, contact both the credit report agency and the company that provided the information.  Tell the credit report agency in writing what information you believe is in error.  The provider must investigate and report the results to the credit report agency.  If the information is incorrect, it must notify all nationwide credit reporting agencies to correct your file.  If the reinvestigation does not solve your dispute with the company, ask that your statement regarding the dispute be included in your file.  A notice of your dispute must be included anytime the credit report agency reports the item.

For self-help information, read how to fix credit report errors. You can also get addresses of where to report a credit agency dispute. Need to dispute a credit card charge? See our free form letter sample to submit your dispute.

A good credit report score can bring you many benefits: a home loan, apartment lease, auto loan, credit cards, and all at the lowest possible interest rates.

Like a job resume, your credit report carries a lot of weight, that's why you need to know exactly what it says about you and your credit history.

Many benefits are cut off if you have a bad credit report score. A bad report can mean higher rates on loans and insurance. It can also mean whether you get hired or promoted by a growing number of employers who now use them in the evaluation process, particularly for job positions that require high integrity when it comes to handling funds.

Even if you think you have a good credit score and you pay your bills on time, you still need to review your credit report for accuracy. Studies have shown that credit reports have an error rate as high as 70%, often the result of simple human or computer error.

Sometimes these errors late payment of bills, even if you pay on time. A more common error is where damaging information of another person, with a similar name or account number, is mixed into your report.

Monitor your credit report so you are alerted whenever negative or derogatory items are reported against you. A neglected credit report can lead to some major inconveniences in your life in the future.

Immediately fix mistakes or remove any incorrect information as soon as you find it. Errors that creep onto your report take time to correct. Catching these mistakes when they occur helps resolve them faster.

If your credit report is less than perfect now, you can deal with lingering problems effectively, and move towards a better credit score in the future.

A good credit rating means more money in your pocket by paying less interest.