Your credit report contains important information about you. It generally includes facts about your identification data, your bill-paying habits, inquiries and public record information.

Credit bureaus compile and sell your credit information to businesses, which use it to evaluate your credit applications. Therefore, it is important that your credit report contain complete and accurate information.

Under the Fair Credit Reporting Act, you have the rights to dispute the completeness and accuracy of information in your credit files.

If you find information in your credit record that you believe is inaccurate, what you need to do is to complete the special investigation request form that comes with your credit report. Follow the forms instructions to fill out all of necessary information.

You may also want to attach a letter to your completed form, dated and signed by you, and along with copies of any documentation you have that helps prove the error in your credit report.

The documentation might include copies of canceled checks, sales receipts, account statements, or previous correspondence between you and the creditor involved.

Attaching a letter to the investigation request form is always a good idea if you don't think that the credit bureaus investigation form gives you enough space to explain why you think there is error in your report.

Keep a copy of your completed investigation request form, letter, and backup documentation. They provide you with the records of what you said and when you said it. Also, the date on letter will let you know when you should have heard back from the credit bureaus.

Once you have completed the investigation request form, mail it, along with your letter, and copies of any documentation. Send it by certified mail with a request for a return receipt. When you get the signed receipt back, file it with the rest of your credit record information.

When a credit bureau receives a dispute, it must investigate and record the current status of the disputed items within a "reasonable period of time," -- between 30 and 45 days, unless it believes the dispute is "frivolous or irrelevant."

If the credit bureau cannot verify a disputed item, it must delete it.

If your report contains erroneous information, the credit bureau must correct it.

If an item is incomplete, the credit bureau must complete it.

If a investigation does not resolve your dispute, the Fair Credit Reporting Act permits you to file a statement of up to 100 words to explain your side of the story.

The credit bureau must include this explanation in your credit report each time it sends it out. Credit bureau employees often are available to help you word your statement.

Be aware, however, that when negative information in your report is accurate, only the passage of time can assure its removal.

Credit bureaus are permitted by law to report bankruptcies for 10 years and other negative information for 7 years.

Also, any negative information may be reported indefinitely for use in the evaluation of your application for:

- $50,000 or more in credit;
- a life insurance policy with a face amount of $50,000 or more;
- consideration for a job paying $20,000 or more.