A 2005 research report found that 25% of all credit reports contain errors serious enough to cause consumers to be denied credit, a loan, an apartment, and even a job. That's reason enough to scour every inch of every credit report you're entitled to. Check them all because although the agencies are collecting very similar data, one error at one credit agency, even if it

doesn't show up at the other two, can dent your credit worthiness.

How, though, do you deal with the bureaucracy of erasing the errors on your credit report?

A credit score is a number typically between 300 and 850, based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person, which is the likelihood that the person will pay his or her bills. A credit score is primarily based on credit report information, typically from the three major credit reporting agencies.

Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. The use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system. While the most widely known score in the United States is FICO (which is most widely used in the mortgage industry), there are many others, such as NextGen, VantageScore and the CE Score.

Start by gathering whatever documentation you can to prove your claim. Contact the lender that dinged your credit;you're seeking information on the source of the disputed charge. It could be something as simple as a typo in a Social Security number.

However, the credit-reporting agency does have an obligation under the Fair Credit Reporting Act to correct errors. So this is where you should concentrate your efforts. Alert the credit-reporting agency of the error. You can dispute the error online with the three credit-reporting agencies,or in writing.

Pay off your debt. rather than shift it into other cards. This seems quirky, but if you have $2,000 spread across five cards currently, realigning that balance onto just two cards and then closing the other three could actually lower your credit

score. Here's why: Say the combined credit limit of those five cards is $10,000. Your balance represents 20% of your available credit. But if you cancel three, and this means your combined credit falls to $5,000, your balance now represents 40% of your available credit. This relatively high number can hurt your credit score.

Never apply for store-branded credit cards just to get the immediate discount. Increasing the amount of available credit lowers your score since it shows lenders that you have the ability to go out and in a fit of binge shopping pile on a ton of debt, which might leave you unable to pay this new debt you're looking to take on.