Even minor errors on your credit report can negatively affect your credit rating, costing you exorbitant amounts of money over the long run in fees and higher interest rates, so it’s important to evaluate your credit report at least once a year. If you find errors, take the time to challenge the errors. The process is not difficult at all and will reward you handsomely.
Identify Any Errors
Comb through your credit report (all three copies from all three major credit bureaus) and look for inconsistencies, inaccurate information, and missing accounts or accounts that are not yours. Highlight anything unusual and make a list of suspected errors.
Initiate an Investigation
By law the credit bureau is responsible for clearing up any information on your credit report that is questionable. Ask the credit bureau questions about anything on your credit record that is either confusing or appears inaccurate, including questioning the absence of information about accounts. Sometimes lenders don’t report good information that could improve your credit rating, and catching this and adding the positive account in good standing to your report could benefit you a great deal.
You can contact the major three credit bureaus:
TransUnion 1-800-916-8800
http://www.transunion.com/corporate/personal/creditDisputes.page
Experian 1-888-397-3742
http://www.experian.com/disputes
Equifax 1-800-685-1111
http://www.equifax.com/dispute
Write Letters to the Credit Bureau Initiating a Dispute
Lay a paper trail of your dispute by writing a letter to all three credit bureaus. You’ll want to include the following information in the letter:
• Your name and address
• Your previous address
• Your previous employer information
• Your birth date
• Your social security number
• The name and account number of the account where the inaccurate information is found
• A request that they “reaffirm” the information
• What the problem is (i.e. You never opened this account, this account belongs to someone else, you paid off this debt and it still reports as not paid off, you are up to date on an account and it is listed as past due, etc.)
• Cite the FACT Act (Fair and Accurate Credit Reporting Act) and say you want the information removed from your report or corrected.
• Remind the credit bureau that they have thirty days to respond or they must remove the negative information.
Send a Copy of the Letter to the Creditor Involved
• Look on a statement or online for the correct mailing address for the creditor
• Let the creditor know you are disputing this information or want the account reported to the credit bureaus.
Follow Up
If thirty days pass without resolution, follow up with a letter notifying that you are aware that they must reaffirm the information you challenged within thirty days of receipt of your dispute, and ask them to please remove the negative information from your account. Send a copy of this letter to the creditor as well.
If the actions outlined above don’t produce the desired results, you can sue the credit bureau and creditors themselves, citing the failure to comply with the FACT Act as your basis for suing.
Remember, protecting your credit rating is important. Take the time to dispute inaccurate information. You’ll be glad you did.
