Sad but true: Your credit score depends on accurate data entry

You know what they say about computers: "Garbage in, garbage out." And all too often with data entry, garbage goes in.

If you do any typing yourself, you know how easy it is to make a mistake. Even when the document you're writing means a great deal to you, you sometimes find that you've sent it out with a glaring error.

Well, the people who enter information that goes into your financial records also make errors. Only their errors will do more than embarrass you - they can ruin your credit score. One wrong number in a social security number, one wrong letter in a name, and something could land on your credit report that has nothing to do with you.

In addition, sometimes bookkeeping tasks that affect your credit are overlooked. For instance, there are certain kinds of information that should be removed after 7 years, but it doesn't always happen. Sometimes you have to contact each of the three major credit bureaus and remind them that the time is up.

That's why you should always be keeping an eye on your credit report and your credit scores. Sources say that 76% of all credit reports contain errors. I say its a good idea to frequently monitor your own credit report and take time to read and understand each entry. Your report could include accounts you've paid in full, as well as accounts you've never had.

It could also include lawsuits, judgments, paid tax liens, collections, late payments, and even child support. This information should have automatically fallen from your record (if it was even yours), but that doesn't mean it has. You need to take responsibility for knowing what's on your report, and getting it changed if it's wrong.

If you find errors, write a letter to the credit reporting agency that listed the incorrect information. As carefully and accurately as possible, list every inaccurate or outdated piece of data and describe why it is incorrect.

When they receive your request, they'll investigate the items you listed and contact you within 30 days to notify you of changes. If your next report still shows errors, contact them again until you get them corrected.

Credit scores are re-figured every 30 days, so be sure to check your reports each time they come in. Catching an error immediately could save you weeks of hassle and untold dollars!