Q.   How should I proceed to draw my own credit reports and FICO scores and then possibly correct errors in my report and thus improve my credit score?

A.   before applying for any business loan or mortgage where your personal FICO score will influence the lender's decision you should take the following action:  Go to  http://myfico.com on the internet.  There are three  credit reporting agencies, Trans Union, Experian and Equifax.  For around $45 you can draw your own complete credit report from each agency along with your FICO score from each one.  The process usually takes about 30 minutes.  You can download the reports and FICO scores, along with a "request for investigation" (complaint) form from each reporting agency.   Drawing your credit this way WILL NOT count as a credit inquiry and thus will never lower your credit score. 

Next, review each credit report in great detail.  Look for  accounts or credit cards that you never held.  Look for identity theft.  Search  for balances that you paid off, but still appear on the report.   For example:  You were late on 5 payments 2 years ago with ABC credit card, but you paid off the balance of $2,300 in full 4 months ago.  The balance is still showing on your report ad $2,300 owed.  You can get the balance removed.  The credit company will not remove the entry on your report that you were late in paying, but the lowering of the balance to $0 will invariably improve your credit score.  YOU MUST list the code number of the specific account in question and the reason for removal on the complaint/investigation request form furnished with the credit report you downloaded.  YOU MUST use the separate form for each agency.   If necessary, make extra blank copies of the investigation forms.  If these forms were not downloaded with your credit report, then there should be an area at MYFICO.COM where you can download the forms.

When you have reviewed the reports from all three agencies and filled out the investigation forms correctly,  make a copy of the forms and then mail them to each of the three agencies.  Mail them via USPS Registered mail with Return Receipt Requested.

Enclose the following letter:

                      =============== LETTER ONE ================

                                                               Your Name
                                                        123 Your Street Address
                                                              Your City, ST 01234
Date ________________-

Big Credit Bureau
Their Street Address
Some City, ST 56789

Dear Credit Bureau,
This letter is a formal complaint that you are reporting inaccurate and incomplete credit information. I am distressed that you have included the below information in my credit profile and have failed to maintain reasonable procedures in your operations to assure maximum possible accuracy in the credit reports you publish.
Credit reporting laws ensure that bureaus report only 100% accurate credit information. Every step must betaken to assure the information reported is completely accurate and correct.
The following information therefore needs to be re-investigated. I respectfully request to be provided proof of this alleged item, specifically the contract, note or other instrument bearing my signature. Failing that, the item must be deleted from the report as soon as possible
 

DISPUTED ITEM HERE OR A LISTING OF THEIR DISPUTE FORMS. Fill out and number their dispute forms from 1 to ____. Make copies of all documents before mailing

The listed item is completely inaccurate and incomplete, and is a very serious error in reporting. Please delete this misleading information, and supply a corrected credit profile to all creditors who have received a copy within the last 6 months, or the last 2 years for employment purposes.
Additionally, please provide the name, address, and telephone number of each credit grantor or other subscriber.  Under federal law, you have 30 days to complete your re-investigation. Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested as well, to be provided within 15 days of the completion of your re-investigation.
Sincerely,
your signature
Your Name
SSN# ________________

Within 3 to 4 weeks the disputed items will be corrected and you will received a new free updated credit report from each agency.  You will not receive a new credit score.  You will have to go back to myfico.com to obtain this.  If you DO NOT receive an answer with 30 days from the time they received your dispute (request for investigation letter, then send this second letter along with a copy of your original dispute forms.

                                   =========    LETTER 2 === (IF NEEDED) =========

                                                                Your Name
                                                      123 Your Street Address
                                                      Your City, ST 01234
Date
Big Credit Bureau
Their Street Address
Some City, ST 56789

RE: Dispute Letter of: ________________________
Dear Credit Bureau,
This letter is formal notice that you have failed to respond in a timely manner to my dispute letter of
__________, deposited by registered mail with the Post Office on that date.
As you are well aware, federal law requires you to respond within 30 days, yet you have failed to respond. Failure to comply with these federal regulations by credit reporting agencies are investigated by the Federal Trade Commission (see 15 USC 41, et seq.). I am maintaining a careful record of my communications with you on this matter, for the purpose of filing a complaint with the FTC should you continue in your non-compliance.

I further remind you that, as in Wenger v. Trans Union Corp., No. 95-6445 (C.D.Cal. Nov. 14, 1995), you may be liable for your willful non-compliance. Be aware that I am making a final goodwill attempt to have you clear up this matter. You have 15 days to cure.
For your benefit, and as a gesture of my goodwill, I will restate my dispute. The following information needs to be verified and deleted from the report as soon as possible:
 

DISPUTED ITEM HERE OR A LISTING OF THEIR DISPUTE FORMS. Fill out and number their dispute forms from 1 to ____. Make copies of all documents before mailing

The listed item is completely inaccurate and incomplete, and is a very serious error in reporting. Please delete this misleading information, and supply a corrected credit profile to all creditors who have received a copy  within the last 6 months, or the last 2 years for employment purposes.
Additionally, please provide the name, address, and telephone number of each credit grantor or other subscriber.
Under federal law, you had 30 days to complete your re-investigation, yet you have failed to respond. Do not delay further. Be advised that the description of the procedure used to determine the accuracy and completeness of the information is hereby requested as well, to be provided within 15 days of the completion of your re-investigation.
Sincerely,
your signature
Your Name
SSN# _______________________

This procedure is the proper way to correct your credit report.   If there are errors which are against you, your credit FICO score will probably be raised (often significantly).   Your credit score is certainly important enough to spend significant time on.