Identification

• Your credit report is a financial snapshot of your credit history. The report lists personal information as well as overall account history, including collection accounts and public records. Lenders report how you've handled your credit accounts and the payment history associated with it. If you are late on your payments, go over the credit limit, default on a loan or fail to adhere to some other requirement for that account, the credit bureaus will list that as a negative on your credit report.
  
  

Significance

• The Fair Credit Reporting Act governs the rights of consumers concerning their credit reports. It lists specific time frames for the appearance of data on the report. Under the Fair Credit Reporting Act, negative account information generally remains on a credit report for up to seven years. Payments on an account will not remove the negative history associated with it. Instead, the bureau will list the status of the account as "paid as agreed."
  
  

Considerations

• If you believe there is an error on your report as it relates to one of your credit accounts, the Fair Credit Reporting Act provides you the right to dispute that error or inaccuracy with the credit bureau. You can file a dispute at the bureau's website, or by phone or mail using the bureau's mailing address or toll-free number located on your credit report. The bureau has up to 30 days from the date you file the dispute to investigate and make corrections.
  
  

Warning

• Some companies advertise that they can remove negative listings from your credit report for a fee. This could be a scam, according to the Federal Trade Commission. Some of the claims made by these companies are false. Under the FCRA, credit bureaus are required to remove errors from a report. They are not, however, obligated to remove accurate information that falls within the FCRA's statute of limitations, even if that data is negative. Remember that you can correct mistakes on your credit report yourself for free.