Step-By-Step - How To Fix Errors On Your Credit Report

It is possible to find errors or omissions in your credit report. Correcting these errors could improve your credit score 100-200 points. It is well worth the effort. Here is what you do.

Errors

Look for errors, omissions or inaccuracies. Be sure to verify the spelling of your name and that your address and previous addresses are accurate.

Look for negative items which should have been removed by now. There are limits to how long these items can stay on your report. Read more about this below.

Look for accounts which do not belong to you and accounts or loans which show an inaccurate balance or show a balance due even though they have been paid off.

Avoid credit scams.

Omissions

The law requires that you are allowed to add information to your credit report which you think may raise your credit score. Some things to consider:

• A salary increase
• Additional information about repayment of a loan
• Good credit standing you have with companies or organizations which have not reported to the credit bureaus

Disputing Errors on Your Credit Report

The Fair Credit Reporting Act (FCRA) requires that both the reporting companies (Experian, Equifax, and TransUnion) and also the person, organization or company which gave them the information must correct erroneous or incomplete information in your credit report. If you find anything in your report which is incorrect or missing, you should contact both the reporting company and the one who gave them the inaccurate information.

If you choose to, you can get the errors or omissions corrected yourself, but the process is complicated, time consuming and can be frustrating. But don't be afraid to try it. If you find the task intimidating or if you've tried to get your report corrected without success, you could look into using a company which specializes in fixing credit report errors.

Here's what you need to do if you try it yourself. Get all your data together, then:

Contact all three credit bureaus

Contact them in writing, using certified mail. Spell out the information which is incorrect or incomplete. Unless they consider it a frivolous dispute,

• By law, they must investigate, usually within 30 days. If the reporting organization does not respond in 30 days, then the item must be removed from your report. But note that if the reporting organization has not corrected their records, they will report the same inaccurate information again when they send their next report in 30 days. You must contact them to correct the error.

• They must forward all the information you sent them to the person, company of organization which provided them with the information. (This is no guarantee that it will be corrected.)

• When the person, company or organization receives notice of a dispute, they must investigate and report back to the credit bureau. If they decide that you are correct, they must notify all three reporting companies so your report can be fixed.

NOTE: Check out the sites of the credit bureaus. (transunion.com, equifax.com, experian.com). They may have a form they use for disputes.

After completing the investigation

The reporting company must contact you in writing with the results.

• If you are correct, they must provide you with a free copy of your report showing the correction. This report does not count as the free one you get each year.

• If you are correct about the error, the disputed information cannot be put back into your file unless, at a later date, it is found that is was accurate and complete.

• The credit bureau must provide you with the contact information (name, address and phone number) of the organization which provided the information.

The Information Provider (Person, Organization or Company)

Write to the information provider and tell then that you dispute what they reported. Again, use certified mail They may have an address specifically for disputes. Call them and ask.

If they gave the information to a credit bureau, they must tell the company that you dispute it. If they find that you are correct, they are not allowed to provide that information again.

What If They Refuse to Correct the Error?

If you are not satisfied with the results of the investigation, here are the steps to take:

Equifax, Experian and TransUnion

Tell them to include a statement reporting your dispute in your file and any future credit reports.

Tell them to provide a copy of your statement of dispute to anyone who recently received your report.

They may charge you a fee to do this.

The Information Provider

Tell the organization, company or person who provided the inaccurate information to include a notice of your dispute anytime they report to Equifax, Experian or TransUnion.

How Long Can the Reporting Company Keep Negative Information?

Kept for 7 Years:

• Negative information which is accurate
• A lawsuit or judgment against you (This could be more than seven years if the statute of limitations is longer.)

Kept for 10 Years:

• Bankruptcy

No Time Limit:

• Criminal convictions
• Your application for a job which pays over $75,000 per year.
• Your application for more than $150,000 credit.
• Your application for more than $150,000 life insurance.

To report deceptive, fraudulent or unfair business practices

Call toll free 877-FTC-HELP (877-382-4357). TTY: 866-653-4261 or

Report it at ftc.gov