Correcting Your Credit Report

Years of responsible spending, hard work and financial discipline typically results in an excellent credit rating. So imagine how shocking it might be for an individual in that position to be turned down for a modest loan or a small line of credit. However, this is not as uncommon as many people might suspect.

Generally this situation is caused by an inaccurate report(s) on the individual’s credit. When this occurs it is important that a person act quickly to have the information corrected and the credit rating restored. Let’s take a look at the steps that need to be taken in order to address an inaccuracy.

  • Get a copy of your reports. In order to have a complete and accurate picture of what needs to be corrected it is important to see exactly what is being reported. An individual should obtain a copy from each of the three main credit bureaus, Experian, Equifax, and Trans Union.
  • Contact credit bureaus. Send a letter to each of the bureaus outlining the inaccuracies and what you would like changed. In addition it is wise to send a copy of the credit report with a circle around the inaccurate information. All correspondence should be sent via certified mail for future records. Additionally, it is important to save a copy of everything that is sent. Once this information has been received each credit agency must initiate an investigation within a period of 30 days. If an error is discovered the agency is required to send a corrected report to any creditor that had requested a copy over the past six months.
  • Contact the creditor. Inform them of the situation and request that they report the corrected information to the credit agencies.
  • Attach a statement. In the end, an individual can not force a credit agency to change its report. However, he does have a legal right to submit a statement of explanation (not to exceed 100 words) to the agencies. The bureaus must provide this statement to any creditor who requests a copy of the report.

The best way to ensure that your report is accurate is take preventative action. It is wise to obtain copies from all three reporting agencies on an annual basis. If it is discovered that a mistake has been made then it is important to act immediately. When contacting the creditor and the reporting agencies it is also important to keep records of all correspondence including: dates, times, names, circumstances, etc. This will be a big help in the event that a dispute happens to arise. Additionally, it is important to note that certified written letters are the favored means of communication because it provides documented proof that your information was received.

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