(DailyChive.com) – Your credit report is a health check of your finances. In essence, it gives lenders, creditors, employers, landlords, and others who have an interest in your financial stability. Your credit report shows your loans and credit cards, the age of the accounts and their balances and payment history, including late or missed payments.
Your credit score is calculated using various factors from your credit report, which means that inaccurate data can negatively influence your ability to obtain credit, get favorable interest rates on loans, or even get approved by a landlord for housing. Fixing an inaccurate credit report takes a little time, but it is worth the effort to repair your credit report.
Monitor Your Credit Reports
There are three major credit bureaus. It is important to check your credit report from each one because different lenders and creditors will report to different bureaus. Pulling each of your reports will give you a more accurate representation of your credit. You can request your credit reports through each bureau:
Or you can go through annualcreditreport.com, the only source authorized by federal law to offer at least one free credit report from each agency each year.
Once you have your credit reports, go through them very carefully. Look for any information that is inaccurate or suspicious. This could look like incorrect balances on a credit card, closed accounts reported as open, accounts reported incorrectly with late payments, an account that belongs to someone else with the same or similar name, or accounts that resulted from identity theft.
How to Dispute Credit Report Errors
Whether the inaccurate information results from the reporting company or identity theft, immediate action is essential.
Dispute Errors with the Credit Reporting Company
Some creditors will report to only one agency, while some report to multiple, so you may need to file disputes more than once. You can go through their website or mail a letter. In writing, detail the specific information and why it is incorrect. Include supporting documentation.
Dispute Errors with the Furnisher
If a company has reported inaccurate information, you can contact them directly and follow their dispute process. Again, all contact should be in writing, and you should provide as much supporting documentation as possible.
Dealing with Identity Theft
If you believe you have information on your credit report that is the result of identity theft, you will likely need to include additional steps. This may involve placing freezes on your credit, filing police reports, and more. The Federal Trade Commission can provide detailed information for handling identity theft and creating a recovery plan.
Review the Results
The credit bureaus generally have 30 days to review your dispute and verify the information. Then they have five days to report the results of their investigation. They must furnish you with the results in writing and a free copy of your credit report if your dispute results in any changes to your report. If your dispute is successful, it should be updated or deleted as necessary with each credit bureau so your records are correct. If the furnisher of the disputed information maintains that the information is correct, you may still request for the credit bureau to include a statement in your file that explains the dispute.
Continue Monitoring Your Credit Reports
You must continue to keep an eye on your credit reports to ensure that they are updated. Depending on the credit bureau’s update cycle, it could take a few months, but if it seems too long, you should contact the credit bureau and the furnisher. As you monitor, take note of any other changes and make sure the reports remain accurate.
Copyright 2023, DailyChive.com
