Disputing Errors on Your Credit Report, Part 1

For the most part, the content on this site is geared toward people who have legitimately messed up their credit, and who are looking for ways to get their finances back on track. I would be remiss, though, if I didn’t touch on a problem that affects more than a few consumers–credit report errors.

It would be daft to think that the credit reporting behemoths – Equifax, TransUnion and Experian – run flawless operations. A transposed SSN digit here, an identical name there, and you’re bound to have items showing up on your reports that aren’t yours. Add in the massive amount of data provided by creditors every day, and it becomes a wonder that we all don’t have erroneous information mucking up our credit files.

Of course, you can’t fix a credit report error if you don’t know it’s there.

First, go to AnnualCreditReport.com and get copies of each of your credit reports. This is the only truly free way to get your credit reports for free – other sites have limited trial periods, and then charge you a monthly fee for continued credit monitoring. You can order your reports from this site once per 12 month period.

A credit report error can seriously impact your FICO score

If you find an erroneous entry, you’ll need to contact each of the three credit bureaus to open an investigation. Before you do this, collect any documentation that might help your case. If the error is made by one of your creditors, gather your credit statements, bank transaction statements – anything you can find that shows you paid your bills on time, or that you don’t owe the amounts reported by the creditor.

If the entry by a company you’ve never done business with, the process can be a bit more challenging. I’d suggest heading over to the company’s website and looking for a customer relations email or physical address. Send them a note outlining the problem, and ask them to send you a letter, on official company letterhead, stating that you have never had an account with the company.

Opening a Credit Report Error Investigation

Once you have your documentation in hand, make copies of everything. Never send originals – you never know when you’ll need to produce the documentation again.

Draft a letter to each of the three credit bureaus, explaining the problem. Make copies of the letters and send them with the copies of the documentation.

By law, the credit bureaus must investigate your claim and respond within 30 days. If they find in your favor, yo an updated copy of your reports at no cost. At your request, they must also notify your creditors, along with anyone who has pulled your credit reports in the past six months, of the changes.

In the next post, I will give you a sample letter you can use to draft your own, along with the mailing addresses of the three credit reporting agencies.

Image attribution: Casey Serin