Your credit report plays a big role in the fate of your applications for credit, insurance or employment. Check your report periodically and deal with errors immediately. Here is a list of what you should keep in mind while tackling credit report errors.

1. Look for errors - don’t wait for them to find you

Check your credit report at least a month before you apply for credit, buy a house or sign up for a utility service. Inaccurate information could ramp up the cost of each product or service.

You are entitled to one free report every year from each of the three national credit bureaus: Equifax, Experian, and TransUnion. You can get the reports at AnnualCreditReport.com or by mailing the Annual Credit Report Request Form to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Don’t contact the three credit bureaus individually.

2. Seek a review in writing

Use snail mail to file complaints. This gives you a paper trail to turn to later. Maintain good records of all contact with a credit bureau.

The letter should have your complete name and address, identify each item you dispute, explain why you dispute the information, and request that it be removed or corrected. Send copies and not the originals of documents that support your position. The Federal Trade Commission website has more details and a sample dispute letter. Include copies and not originals of documents that support your position. 

Consumer reporting companies must investigate the complaint, usually within 30 days, unless they consider it frivolous.

3. Send the dispute to all three bureaus

Your credit reports tend to overlap. A red flag in one report will usually be reflected in the others. Even though you may be disputing only one bill, you have three disputes on your hands.

4. Inform the creditor in writing

Don’t count on the credit bureau to inform your creditor about the dispute. Send the creditor a a return-receipt-requested letter to the company that claims you didn't pay your bill. A carbon copy version of your letter to the credit bureau should be enough. Include copies and not originals of documents that support your position

5. Get the results in writing

The consumer reporting company must give you the results of the investigation in writing and a free copy of your report if there are changes made. This free report does not count as your annual free report.

Ask the consumer reporting company to send notices of any corrections to anyone who received your report in the past six months. You can have a corrected copy of your report sent to anyone who received a copy during the past two years for employment purposes.

6. Include creditors who don't appear on your credit report

Your credit file may not contain all your credit accounts. Not all creditors provide information to credit bureaus. If you have been denied credit because of an "insufficient credit file" or "no credit file" and you have accounts with creditors that don’t appear in your credit file, ask the credit bureaus to add this information to future reports. But remember that if these creditors do not report to the credit bureau regularly, your file won’t be updated.

7. Taking legal action

If either the bureau or the creditor does not respond, you might have to opt for a lawsuit. Credit report dispute cases are highly specialized, and it's best to hire a lawyer who specializes in these cases. The National Association of Consumer Advocates website has a list.