Your credit report may be riddled with mistakes that are bringing your credit score down. Federal Trade Commission (FTC) findings show that 16 percent of reports may contain harmful and incorrect information, Bob Sullivan, an MSNBC columnist, warns. The Fair Credit Reporting Act (FCRA), a federal law, gives you the power to challenge erroneous items and get them erased so they cannot affect your ability to open new accounts. They will be pulled completely from the report if the creditor does not verify them within 30 days of your challenge.
Step 1
Compare your three credit reports to see which ones contain errors that need to be challenged. TransUnion, Experian and Equifax independently maintain credit reports on you. Mistakes may show up on all three reports or only one or two. The FCRA allows you to get a no-cost report from each bureau every 12 months if you order them through annualcreditreport.com.
Step 2
Copy the three reports and circle the errors on each one. You will used the marked-up copies as part of your challenge.
Step 3
Write each bureau a letter with a list of the items you are challenging and a specific reason for each dispute. Credit Infocenter, a credit repair website, advises you can challenge negative information for any valid reason you can find, including misspellings, incorrect dates and inaccurate balances or credit limits. Only list one reason even if an item has more than one inaccuracy. This will give you another chance to challenge it if the credit bureau rules your first challenge invalid.
Step 4
Gather supporting information if you have any. It is not necessary, but statements, canceled checks, money order receipts and contracts all strengthen your challenge if you have them. Make photocopies and keep the originals in your files.
Step 5
Make a copy of your letter and enclose it, along with your credit report copy and all your supporting documentation, in a large envelope. Mail it certified to the appropriate credit bureau and ask for a dated receipt. The Federal Trade Commission advises against filing your challenge online because you have no tangible proof of what you sent or whether it was received. The current dispute address may be on the credit report, or you can find it on the credit bureau website.
Step 6
Review the credit bureau response to your challenge, which must come within 30 days under the FCRA. It should list the findings for each item and tell you which disputes were ruled valid. Those entries should be eliminated from your credit report.
Step 7
Send another challenge for any items the credit bureau claims to have verified if you have another inaccuracy you can cite. You may do this as long as you have new grounds for a challenge each time.
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