Fixing Errors On a Credit Report

Your consumer credit report is a recorded history of your credit activities both good and bad. Your credit report will list all of your loans,credit card accounts and the payment history of each listed account. It will also list judgments and derogatory public records like bankruptcy, judgments and back child support.

It is very critical that the information listed on your credit report is accurate because it is used for more then just loan approval. Many insurance companies use it to determine rates and even employers will look at credit reports to screen potential employees.

The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission (FTC), is designed to promote accuracy and ensure the privacy of the information used in consumer reports. According to the FCRA the credit reporting bureaus and the account issuer (banks and credit card companies) must under law correct error and incomplete information on a consumers credit report.

However even with laws in place you may find errors on your credit report that you will want to fix,here are some credit repair steps you need to take in order to dispute credit report errors yourself.

1. The first thing to do is get a copy of your credit report from each of the three major credit bureaus: Equifax, http://www.equifax.com; Experian, http://www.experian.com; and TransUnion, http://www.tuc.com

2. Write a letter to each CRA the is reporting the error and tell them you beleive the information to be false.Be sure and enclose copies of any documentation or other proof that you may have that supports your claims.

3. Make sure that the credit dispute letter you send in contains your name,address and social security number. It should also list the account numbers you are disputing and a request that they be deleted or corrected. Also make sure you make copies of each letter you send to the credit bureaus and keep them for your reference.

4. Mail your letters to the CRA (credit reporting agency) Always send your credit dispute letters by certified mail and request a receipt return so you know exactly when the letters arrived at the credit bureaus.

5. The FCRA requires that the credit bureaus investigate the items you are disputing within 30 days of receiving your letters. Although if they consider your dispute frivolous they can refuse them and not do the dispute. They are also required to send all the proof that you provided them to the original account issuer.

6. Once the original account issuer is made aware of your dispute by the bureaus they must investigate your account and review all the information you provided as well as their own records and reply to the credit bureaus.

7. If it turns out that the information on your credit report is in fact reporting incorrect information the lending company must notify all major credit bureaus so that it will be reporting correctly.If they do not answer the dispute claim the credit bureaus made or they are unable to prove the information is not false it must also be removed from your credit report.

8. Upon completing the credit dispute investigation the credit bureaus are required to send you the results of their investigation as well as a free copy of your credit report if the investigation changed your credit report.

9. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the credit card company verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the credit card company.

10. In addition to the CRA, you should also write to the credit card company about the error. Again, include copies of documents that support your dispute. If you are correct — meaning the information you disputed is found inaccurate — the credit card company cannot use it again. Further, at your request, the CRA must send notices of corrections to anyone who received your report in the past six months.

If you have any questions on fixing errors on credit reports or would like the advice of a mortgage profesional please do not hesititate to contact our team of mortgage professionals.