We're looking at the tips you need to know to repair your credit report

Posted: 10:33 PM, Aug 09, 2016
Updated: 2016-08-11 09:41:00-04

One in twenty people have wrong information on their credit report that could be costing them a lot of money according to the Federal Trade Commission.

Those mistakes can lower your credit score which leads to high insurance rates, high interest rates, sometimes being denied an auto or home loan.

Whether it’s a ‘late’ bill payment you know you paid on time or someone else’s account that appears on your credit report, if it shouldn’t be there,  you have a right to take that creditor to court and make them pay cold hard cash for their mistake

The first step to correcting a credit report mistake is to formally dispute it says Attorney Adam Alexander.

If you’d like to do it yourself, there’s a template on the Federal Trade Commission’s website.

The credit bureau has 30 days to investigate your dispute, then let you know whether they’ll delete the information or not.

If you don’t think you can afford a lawyer - think again.

“Under the Fair Credit Reporting Act you win up to $1000 per violation plus payment of your attorney fees and costs,” says attorney Adam Alexander.

As long as you have a legitimate claim and the proof to back it up.

Beyond the joy of watching your FICO score soar to new heights, winning the lawsuit could entitled you  to compensation for the  financial damage the incorrect credit reporting caused.

“If you got a 6% mortgage when you should have got a 4% annual percentage rate over 20-30 years that could be $100,000,” says Alexander.

That’s one hundred thousand reasons to review your credit report every year to check for errors and save proof you paid your bills in full and on time.