Credit bureaus maintain files filed with personal credit information that could help or hinder your ability to buy a car, arrange a mortgage, or secure a loan. The file also contains your FICO score, a mathematical calculation that creditors rely on to decide which people they should lend money to and what interest rates to quote. Scores range from 300 to 850, with a score of 700 considered good.

If you don’t know your FICO score, it’s time to find out. The best time to review your credit report and your FICO score is well before you apply for credit. The last thing you want is to apply for credit and discover a mistake or outdated information has hampered your ability to quality for a loan.

There are several reasons mistakes may appear on your report:

• Lenders may report information incorrectly

• The Credit Reporting Agency may enter the information incorrectly

• Fraudulent activity is occurring

• Old derogatory information has not been removed

It is important to review your credit report once each year to see that all your personal information including your address, employer and other personal data is accurate. Review the credit inquiries to see which companies have been making inquiries and when. Be suspicious if you see an inquiry from a company you have not dealt with. This could be a sign that someone has committed identify theft and is using your personal information to apply for credit or make purchases in your name.

If you identify a mistake or suspicious activity, complete a credit bureau dispute form or write a letter that clearly identifies each mistake and why it is wrong. Include copies of supporting documents and a photocopy of your credit report with the mistakes circled. Keep copies and records of all the forms, letters and documents you send to the credit bureaus and the dates you send them.

The credit bureaus have 30 days from the time they receive your letter to investigate. After that time they must remove the inaccurate information or demonstrate that it is true. If the information in your credit report is accurate but outdated – such as a bankruptcy that was more than 7 to 10 years ago – the credit bureaus must remove it. If you identify something a creditor has placed in your file in error you should contact the credit bureau who will contact the creditor and put a letter in your file indicating the item is being disputed.

Be persistent – it is your financial future and security you are fighting for.