Repairing Credit in Four Easy Steps

When you order a credit report, there may be credit items that are incorrect, errors on the credit report,  or legitimate credit problem items that were caused by you. Credit data that is reported as incorrect, include accounts that are not yours, application notices that you never filled out or home address/employer information that is out of date. Actual errors on the credit report can include companies reporting delinquencies that you’ve already remedied or a collection that is old and shouldn’t be reported as overdue.

It is up to the consumer to notify the credit agencies of the inaccuracies and attempt to have them removed. It doesn’t take long, due to the Fair Credit Reporting Act (FCRA) requiring the credit bureaus to investigate claims within thirty days. Upon finding that an error has occurred, they must correct the error and supply the consumer with a free credit report. There are basic steps to take in order to have these errors removed or changed on the credit report.

Four Basic Steps to Dispute a Credit Report Error

1) Keep Records of all Communication
It is very important to keep records of all phone conversations along with copies of each piece of mail or e-mail that has been received. Any mail sent on your behalf needs to be sent by certified mail with a return receipt requested. When sending correspondence to the credit reporting agencies, be sure to include pertinent copies of documentation that backs up your claim. Without such proof, it will be difficult to resolve the errors. Proof can also be in the form of canceled payment checks or past billing statements. The Fair Credit Billing Act requires creditors to keep your statements on file for access by the consumer.

2) Submit Dispute to Credit Reporting Agency
Inform the credit reporting agency that has reported the inaccurate information (Equifax, Trans Union or Experian) which information was falsely reported. A dispute letter should be sent along with a copy of the credit report with the item in question identified. Be sure to explain what you are requesting that they do, either to delete an incorrect item or update an out-of-date entry. The credit reporting agency has 90 days to investigate the claim. They will send the data supplied regarding the dispute, to the creditor business that had reported the inaccurate information. The creditor must then investigate your complaint and report back to the credit reporting agency its findings. If the creditors disagree with your claim, they will need to explain why the information reported is accurate. If the information on the credit report turns out to be false, the creditor must then notify all the credit reporting agencies in order for the information to be corrected.

3) Get all Credit Items Included Within your Credit File
While applying for credit and you were denied credit due to “no credit file” or “insufficient credit file”, it would be wise to approach the creditors that do not report your credit and ask them if they could report your good credit behavior to the credit bureaus. Although they are not required to do so, if you kindly ask and they are able to verify your account activity, most will report your credit behavior for a fee.

4) Continue Process Until All Incorrect Items Removed
If your dispute is changed on your credit report and it suddenly appears once again, you will have to submit the dispute to the credit bureaus once again. Keep doing this until the falsely reported item no longer appears on any of your three credit reports. This is extremely frustrating and cumbersome to do, but that is how the credit reporting system works.

If you are unsuccessful in having falsely reported information removed from your credit report, there is the option of taking legal action. You will need to hire an attorney who will take the creditor to court. If that is too extreme and expensive an option to undertake, the next option is to attach a letter of explanation to your credit file. The offending business is obligated to include your letter in all subsequent inputs to the credit reporting agencies.

It may take awhile to remove some of the errors and inaccuracies from your credit report, although it’s well worth the effort. Credit reports often determine whether or not a loan is able to be obtained and the interest rate of that loan. A favorable credit report can also make it possible to obtain great credit card deals and auto loans with lower interest rates. Fortunately or unfortunately, our economy is driven by credit. Having high credit scores makes it possible for consumers to obtain and utilize credit without high fees and charges.

Lori English is a real estate broker and internet business woman. As a web expert, she writes about LA homes for sale, as well as for other websites. With her experience, certificates, and degrees, she understands real estate, the internet business, and how to invest in properties.