Having an accurate credit score is essential for getting a good interest rate on a car loan or any loan for that matter. It is a good idea to check your credit report at least once a year to look for inconsistencies. Should you find any, it is critical that you fix them as soon as possible. This is especially true if you are applying for a mortgage. The Federal Trade Commission (FTC) recommends that consumers stay away from companies claiming they can help fix your credit score as many of them are scams. Generally, only the passage of time will help clear up an accurate negative mark against your credit.
Step 1
Obtain your credit report at annualcreditreport.com. This website will give you access to all three agencies' reports and will not charge you to see the report as per law.
Step 2
Review each report and look for anything that may seem out of the ordinary or that is incorrect. Look for things like open credit cards you don't have or payments that may have be mistakenly recorded as late.
Step 3
Write a letter to the credit agency asking it to remove the invalid item from your credit report. There are three credit agencies: Experian, TransUnion and Equifax. Should the error be on all three reports, you will have to send a letter to each agency separately.
Step 4
Tell the agency in the letter what you think is incorrect and provide it with copies of proof to support your claim. Ask the agency to remove or correct it.
Step 5
Send your letter by certified mail to the agency, so you have proof that you sent it to the agency and it was received by them.
Tips and Warnings
- Credit repair organizations must give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract.
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