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Correcting Your Credit Report
Years of
responsible spending, hard work and financial discipline typically results in an
excellent credit rating. So imagine how shocking it might be for
an individual in that position to be turned down
for a modest loan or a small line of credit. However, this is not as uncommon
as many people might suspect.
Generally this situation is
caused by an inaccurate report(s) on the individual’s credit. When
this occurs it is important that a person act quickly to have the
information corrected and the credit rating restored. Let’s take a
look at the steps that need to be taken in order to address an
inaccuracy.
Apply for
Unsecured Personal Loans!
- Get a copy of your
reports. In order to have a complete and accurate picture of what
needs to be corrected it is important to see exactly what is being
reported. An individual should obtain a copy from each of the
three main credit bureaus, Experian, Equifax, and Trans Union.
- Contact credit bureaus.
Send a letter to each of the bureaus outlining the inaccuracies
and what you would like changed. In addition it is wise to send a
copy of the credit report with a circle around the inaccurate
information. All correspondence should be sent via certified mail
for future records. Additionally, it is important to save a copy
of everything that is sent. Once this information has been
received each credit agency must initiate an investigation within
a period of 30 days. If an error is discovered the agency is
required to send a corrected report to any creditor that had
requested a copy over the past six months.
- Contact the creditor.
Inform them of the situation and request that they report the
corrected information to the credit agencies.
- Attach a statement. In
the end, an individual can not force a credit agency to change its
report. However, he does have a legal right to submit a statement
of explanation (not to exceed 100 words) to the agencies. The
bureaus must provide this statement to any creditor who requests a
copy of the report.
The best way to ensure that
your report is accurate is take preventative action. It is wise to
obtain copies from all three reporting agencies on an annual basis.
If it is discovered that a mistake has been made then it is
important to act immediately. When contacting the creditor and the
reporting agencies it is also important to keep records of all
correspondence including: dates, times, names, circumstances, etc.
This will be a big help in the event that a dispute happens to
arise. Additionally, it is important to note that certified written
letters are the favored means of communication because it provides
documented proof that your information was received.
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