44% of people polled in a recent survey found errors on their credit reports. Inaccuracies or even fraudulent accounts can hurt your credit score, making it difficult to obtain any kind of credit for a home, car, or even credit card.
Luckily, 7 On Your Side has a quick road map to clear up your credit.
A score below 630 means you'll pay much higher interest and can even block you from qualifying for a loan, being able to rent an apartment or even getting a job
"Potential employers are able to look at our credit score as part of the hiring process ... there's a theory that someone who can manage their credit is also a good employee," Consumer Reports Investigative Reporter Lisa Gill tells us.
Remember, every single flaw on your credit report can shave points off your score.
Everyone is entitled to one free credit report each year from each of the three credit reporting agencies -- Equifax, Experian and Transunion,
Get those reports for free by going to AnnualCreditReport.com
If you see something that should not be on your report, dispute it. You can do this through the credit reporting agency or the company which made the mistake, which could be a bank, credit card company, or even your landlord.
You can contact your credit reporting agency by phone, email, or mail. Your dispute should contain your contact information.
Include a copy of your credit report with the mistake circled. Add a brief explanation on why you're disputing the charge, with a request that the charge be removed, and include any proof -- like a receipt showing you paid the bill.
Important: if you mail your request, send it certified with return receipt requested so you have proof it was received.
"A consumer has to be extremely vigilant about what's going on with their credit," Gill emphasizes.
Make it a regular habit to check your credit score and credit reports.