Credit-Scoring Confusion

But before you do all that, contact the creditor supplying the incorrect data. You have to attack the erroneous information at the source. If you can clear it up with your creditor first, you have a better chance that the error won't be transmitted again.

The law requires credit agencies to investigate disputed information and correct inaccuracies within 30 days of hearing from a consumer.

If you don't get satisfactory action from the credit bureau or creditor, you have at least two recourses. You can complain to the FTC. Unfortunately, the commission doesn't get involved in individual consumer problems. However, your complaint might lead to some law enforcement action.

Your second option is to file a lawsuit. You can sue in state or federal court. In some cases, you may have more rights under state law. For more information, contact your state or local consumer protection agency or your state attorney general's office.

These types of cases are not easy to win, but if you have a particularly egregious situation, go for it. To find a lawyer, try the National Association of Consumer Advocates. The association's Web site ( http://www.naca.net ) lists consumer lawyers by state. When searching, click on the links for "View Details" and look for an attorney with experience handling Fair Credit Reporting Act cases.

Finally, those of you with great credit scores, 720 or higher, need to stop obsessing. You don't need a perfect score to get the best credit offers.

For example, one reader wrote: "I have a FICO score of 780 with $6,000 in a savings account and a credit card balance in the same amount on one credit card. If I withdraw all the funds I have in my savings and pay off the one remaining credit card balance, would this measurably improve my FICO score? Or, given my current high score, would it not be worth the effort?"

Having $6,000 outstanding on a credit card is not good. But clearly having that much revolving debt is not damaging this person's credit standing.

I wouldn't deplete my savings to pay off that balance, especially if it were all the emergency cash I had.

Certainly you want to pay down debt, but not at the risk of being cash poor.

Whatever credit-scoring systems lenders use, continue to question what you don't understand. After all, your scores directly translate into real dollars.

· On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online athttp://www.npr.org.

· By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

· By e-mail:singletarym@washpost.com.

Comments and questions are welcome, but because of the volume of mail, personal responses are not always possible. Please note that comments or questions may be used in a future column, with the writer's name, unless a specific request to do otherwise is indicated.