DISPUTING INFORMATION ON YOUR CREDIT REPORT

It is possible, and even likely, that there is at least one mistake on your credit report. Information can be incorrect or misrepresented, especially in the years following a bankruptcy or foreclosure. This guide should illustrate the basic steps involved in maintaining and improving your credit, as well as ensuring the prevention of fraud and identity theft. As a side note, it is vital that you keep a record of all correspondence, whether it’s with creditors or the credit bureaus. Never send original documents.

STEP ONE: CONTACT THE CREDIT REPORTING AGENCY

To initiate the dispute process, you should first contact the credit reporting bureau that is reporting the account in question. There are three main bureaus: Transunion, Equifax, and Experian. If an incorrect account is listed with one bureau, there is a good possibility it is listed with the others. It is advisable to contact all three bureaus to prevent this from happening.

There are a variety of ways to get a credit report at a minimal cost. A third-party, like Old Guard Mortgage, may provide one, but there are multiple outlets on the internet to purchase inexpensive reports. The following information will be of great assistance to you:

Experian www.experian.com 888-397-3742

Transunion www.transunion.com 800-916-8800

Equifax www.equifax.com 800-685-1111

The bureaus will help you submit a dispute the most efficient way possible; it may be via email, telephone, or regular mail, depending upon your preference. Following the dispute, the agency will review the file and contact the creditors in question. After the creditor investigates the matter and makes a final decision, they will contact the reporting bureaus and the appropriate changes will be made to your report. It is important to know that this process should only take 30 to 45 days, and it may be necessary to follow up with the creditor and the reporting agency. Be sure to request documentation of changes that were made.

STEP TWO: CONTACT THE CREDITOR REGARDING THE DISPUTE

Sometimes it is just as easy to contact the creditor and get verification that a disputed account is, in fact, incorrect. In most circumstances, it is still advisable to contact the credit bureau first, except in the case of fraud. Regardless of how you go about disputing an account, the Fair Credit Reporting Act requires that a creditor rectifies incorrect account information, both internally and externally, within thirty days. Again, be sure to request all pertinent documents related to the dispute.

STEP THREE: ENSURE THE ERROR HAS BEEN FIXED

Within thirty days of your inquiry, the credit bureaus should be notifying you of the results of your dispute. They may also provide a new and updated credit report for you to review and ensure that all corrections were made. If the new report is acceptable, you may request that the credit agency send the updated report to all parties who received an inaccurate report within the last six months. In the case of employers, the time frame is extended to two years.

If you have not been able to adequately resolve a credit issue, you may request that the credit agency attach a credit dispute rider to your report. This short summary will describe why you dispute a specific irremovable account and why you believe it should not be present. The statement will become part of your permanent credit file.

Last of all, do not hesitate to ask for help. The credit agencies are, for the most part, very cooperative and willing to work with the customer. Your credit report is a vital financial tool and credit errors may prevent you from buying a car or a house, or even from getting a job. The repair process is relatively simple and may be the best financial decision you will ever make.