How to Correct Errors in Your Credit Report

Thanks to the Fair and Accurate Credit Transactions Act ("FACTA"), established in 2003, individuals who want to view the informaiton in their credit reports are able to obtain one free report each year.  This allows consumers to ensure that the information contained in their credit report, the same information that is used to calculate their credit scores and the same information lenders used to determine whether or not you are credit worthy- is correct. 

Whenever you apply for credit and are denied, you must be furnished with a list of reasons why you were denied credit.  Sometimes this is the first indication that there may be errors in your credit report.  However, you can obtain a copy of your report once each year to verify the contents.

Dispute Errors

Follow these steps to easily and quickly correcting any errors you find in your credit report.

1. Circle everything in your credit report that you feel is an error.  Check the report thoroughly and verify that your addresses listed are correct, your name is correct, and that each of the credit accounts are listed accurately.
2. Write a letter to the agency from which you obtained the report.  You'll want to describe each instance that you circled and why you feel it is an error.  Request an investigation in order to resolve the errors.  It is best if you have paperwork that will support your claims that errors were made; when you have information to support your case make a photocopy and send along with your letter.
3. Use certified mail with a return receipt requested so there is no question as to whether or not the agency received the information you've sent.
4. Send a letter to each creditor that has reported statements that you feel are errors- the individual creditors only need information pertaining to the particular account in question, so don't send a copy of the letter you're mailing to the agency containing ALL errors from various accounts as it will only confuse and delay the resolution.

Disputing Personal Information

If you find errors in items listed that do not pertain to specific creditors, including your addresses or your name, you could photocopy your driver's license or a recent utility bill in order to verify your name and address.

What Happens to Disputed Information?

When disputes are sent to the credit reporting agencies, they begin an investigation of your account.  They contact each of the creditors you've indicated contain erroroneous information, and attempt to verify the accuracy.  The best part is, if the creditor is unable to verify the entry is correct, they must remove it!  After the investigation has ended, you will receive another free copy of your report if changes have been made based on the investigation.

Additionally, if your investigation of the disputes results in changes to your credit report and score, you can request the reporting agency follow up with everyone who viewed your credit report in the last six months and send them a corrected version of your credit report.