How to Correct Credit Report Errors

Check Your Credit Report For Errors

You have the right to know what is in your credit report. Most of the time the information is correct, but mistakes do happen. And it is not the responsibility of the credit bureau to verify the information. They report on whatever they have been told without questioning it. It is your responsibility to make sure it is all correct.

Credit Report vs Credit Score

There is a difference between your credit report and your credit score (myFICO® Score Watch™). To put it simply, the information on your credit report is used to calculate your credit score. If information is incorrect, your score could be calculated lower than it should be. Note that getting your credit report does not tell you your credit score.

Why Does Your Credit Score Matter?

If there is inaccurate information on your credit report, your FICO score may be lower than it should be. Several things are affected by a low credit score.

• You may be denied a loan, mortgage or credit card.

• The interest rate you will be charged on a loan or credit card depends on your score. A higher interest rate could cost you thousands of dollars.

• You may not get the job you applied for.

• You may be required to put down a large deposit for utilities.

• Landlords may not rent to you.

• Cell phone companies may not give you a contract or may require a large amount up front.

• Insurance companies may charge you a higher premium of not give you coverage.

What to Look For

You need to check your credit report for inaccuracies and omissions. Check for the following:

• If a payment was reported as late, was it really late?

• Are all the accounts yours?

• Is a loan paid off but still on the record?

• Are the loan balances correct?

• Is your name spelled correctly?

• Are your present address and previous addresses correct?

• Is anything at all incorrect?

How to Correct Adverse Information on Credit Reports

You can fix errors in your credit report yourself and that will not cost you much besides postage and your time. You can also pay someone else to do it. There are good reasons to do that which we talk about below. If you do it yourself, here's what you need to do.

You'll first have to decide to be persistent. Correcting errors in your credit report takes lots of time and effort. The credit bureaus get tons of complaints about errors in their reports. Most of them are bogus, so most complaints are not taken seriously. You will have to get their attention first and then get them to respond to you. Also, remember that they do not work for you and your complaint is not high on their priority list. Just keep at it.

Gather all your information. Then contact all three credit bureaus, probably multiple times, using certified mail. You will also have to contact the person or organization who gave the erroneous information to them. Reports are made to the credit bureaus every 30 days. If they do not correct their records, they will report the error again next month and you will have wasted a lot of effort.

Keep careful records. Keep copies of everything. Keep a log of any phone calls - who you talked to and when, what was discussed, promised, etc.

If one agency makes the correction, they will not notify the others. Don't assume you're finished at that point. Keep pushing until the other two fix the mistake.

Click here for more detailed information about how to fix errors on your credit report.

Bad Credit Repair Services

Maybe you aren't up to attempting to do all that work and dealing with the hassles on your own. Or maybe you've tried and gotten no results. In that case, we recommend using a reputable credit repair service like Lexington Law. These companies know what they are doing. That is their business. They know how to get the credit bureaus to pay attention and correct your errors. And their services can be surprisingly affordable.