Taking Credit Check Your Credit Report To Avoid A Nasty Surprise If It Contains Erroneous Or Outdated Information

Now don’t panic.

Chances are, everything on your credit report is accurate and up-to-date.

But there’s something you should know.

Mistakes do happen. They can take place without you knowing it. And they can burn you when applying for a job or trying to get a loan.

That’s why Michael Hayes recommends obtaining copies of your credit report at least once every two years. “Just to check out what’s on there,” said Hayes, director of education and marketing for Spokane’s Consumer Credit Counseling.

A credit report is essentially a history of your Visa and MasterCard accounts, bank loans, department store charges and the like.

Mistakes, typically caused by human error or computer glitches, can range from closed charge-card accounts being shown as still open to indications that you are responsible for a mortgage that actually belongs to someone with a similar name.

“Mistakes are not unusual,” said Hayes.

The good news is that they can be fixed. After getting the three major consumer-credit reporting bureaus to send you copies of your personal credit history (see box), you can report discrepancies to them. And they will take the step of contacting the credit grantor in question about the disputed data.

The bad news is that in the short-term erroneous information can, for example, raise a red flag in the minds of potential employers. (More and more businesses are making credit-checks a part of the candidate screening process.) Or it could keep you from getting a home loan when you want it.

“That can be a pretty big blow, especially if you’re looking at a time crunch,” said Hayes.

Some of the damage can be subtle.

If your records inaccurately show that you once were 60 days late making a payment, it won’t necessarily mean you will find it impossible to obtain credit. But it could mean you won’t qualify for preferred-customer interest rates and spending limits.

Likewise, if your records inaccurately show certain closed accounts as still open, it could complicate attempts to open new accounts. Sometimes you cannot get new credit if you seem to have too many active cards already.

And if you don’t have it erased, bad information can stay on your report for years.

Some people assume that their credit status is impeccable because they continue to receive charge-card solicitations. But that’s not necessarily a certain indicator that all is well, said Hayes.

The only way to know for sure is to check your report.

Nick Warrick, president and general manager of Spokane’s Credit Bureau Services - an affiliate of Equifax - said it’s a good idea to review your credit status before attempting to finance any major purchases.

In addition, he said it might be wise to check your report if you have received a bill intended for someone else or if a collection agency has been contacting you about charges that are not yours.

“If I got a telephone call regarding an account that wasn’t mine, I’d think about checking my report,” he said.

You don’t have to be a financial wizard or an experienced bureaucrat to decipher these documents. “It’s fairly self-explanatory and matter-of-fact,” said Warrick.

The credit bureaus provide step-by-step instructions about expunging bad information.

If, however, you have a bad credit-rating that is richly deserved, you’ve got an altogether different problem.

But if it’s just a matter of your report erroneously listing one of your father’s credit card accounts under your name, that shouldn’t be difficult to fix.

The credit bureaus are in the business of selling information. It’s in their interest to see that it is accurate.

Of course, there are those who regard as a kind of vaguely sinister Big Brotherism the whole idea of personal financial data stored in soulless computers. They probably doubt that errors can ever be addressed in the consumer’s favor.

For individuals with such an outlook, Warrick has some advice: “If somebody is really paranoid about it, the option is to not apply for credit in the first place.”

, DataTimes ILLUSTRATION: Staff illustration by Molly Quinn

MEMO: This sidebar appeared with the story: REQUESTING REPORTS To start the process of obtaining your credit reports, contact the information bureaus listed below. Have a pen and notepad ready. Reports typically cost about $8. Experts advise requesting reports from all three, as the information they have in their databases is not always identical. Trans Union Corp.: (800) 916-8800 Experian (formerly TRW): (800) 682-7654 Equifax: (800) 685-1111 Credit Bureau Services (Spokane affiliate of Equifax): 324-1287