How to fix errors on your credit report
The credit report represents a consumer’s financial report card. Lenders, creditors, employers, and even landlords are increasingly looking at credit reports as a measure of one’s financial responsibility, and they are using it to make critical financial decisions that can have major implications to lenders. However, it’s a dirty secret amongst the industry that credit reports are usually riddled with errors. Outdated information, erroneous information, even credit cards that belong to someone else entirely – these are just a few of the errors that you might find on your credit report.
Before you can fix any errors on your credit report, you need to obtain a copy of it first. Lucky for you, the government has made it possible for you to obtain free copies of your credit report from the three main credit reporting agencies (Equifax, TransUnion, and Experian). Simply go to AnnualCreditReport.com and request your report from each agency. You can only request one copy every 12 months, but it sure beats paying $10 for each report. There are tons of third party agencies out there offering varying credit monitoring packages, credit scores, and access to your credit reports, however by accessing AnnualCreditReport.com (and only that site) you skip the middleman and go straight to the source.
If you notice errors on your credit report, you should make it a priority to fix them. Luckily, there are strict regulations in place that the credit bureaus must comply with to correct credit reports. Errors on your credit report must be removed or corrected by the credit agency. Usually, they need to comply within 30 days of written notice. The onus is on the credit bureau to have accurate information, however if you have proof that the information on the credit report is wrong that can greatly speed up the process. Also, the credit reporting agency is not allowed to report outdated information. Outdate information includes things like credit card accounts that were bought out years ago.
It is advised that you go to the credit agency directly for information on how to fix errors on your credit report. Go to the agency whose report contains the error in question – for example, if there are errors on your TransUnion report contact TransUnion for a solution. Equifax has an online complaint form where you can submit inquiries; turnaround time for initial reply is about 24-48 hours. For additional information, consumers are encouraged to contact the federal trade commission, or go to their webpage. They have a publication conveniently titled “A Summary of Your Rights Under the Fair Credit Reporting Act” that is invaluable to those in need of credit repair.
Unfortunately, fixing errors on your credit report is usually a reactionary process. Most consumers don’t realize that there are mistakes on their credit report until they are denied credit. Getting a copy of your credit report before applying for a loan can save you a ton of headaches later on.
Tags: annualcreditreport.com, applying for a loan, credit agency, credit bureaus, credit card, credit cards, credit repair, credit report, credit reporting agency, credit scores, cresit reports, denied credit, equifax, experian, Fair Credit Reporting Act, transunion
