Consumers are granted one free credit report from each of the three major credit bureaus (TransUnion, Equifax and Experian) every year. Careful examination of credit reports helps individuals spot any errors in their credit report, which may drastically affect credit rating, or how the creditors perceive the creditworthiness of potential borrowers. Credit scores, which range from 350 (poor) to 850 (excellent), determine whether or not a creditor approves a loan for anything from a new credit card to a home loan or mortgage loan based on that person's credit history. Paying on time, avoiding collections, bankruptcies and maintaining an excellent payment record are all important factors in such decisions. However, a consumer finding an error or mistake on his or her credit report can fix it as long as certain steps are followed.
Step 1
Order a free copy of your credit report by accessing AnnualCreditReport.com (link provided below) and requesting a free copy from each of the three credit bureaus. Consumers can request a copy of their report(s) by phone or mail. The Annual Credit Report Request Service mails reports withing 15 days following request.
Step 2
Request a copy of your credit report directly from each of the three credit bureaus; Experian, Equifax and TransUnion via their website homepages, which also offer contact information based in individual preferences.
Step 3
Carefully look over your credit report for errors. If you find an error, or find something that you would like to dispute (loan defaults, past due payments, judgments, collections, late payments, credit inquiries or rejections), you may request an investigation from the credit bureau to resolve the question or issue.
Step 4
Write a letter to the credit bureau in question, but also make copies to send to the other two credit bureaus. In the letter, define the error, why you think it's an error and make copies of any supporting documents to back up your claim.
Step 5
Mail the dispute letter, along with supporting documents and a copy of your credit report, to the credit bureau through snail mail or through the credit bureau's website online dispute form, which will allow you to provide attachments for your supporting documents. However, it's best to keep a hard copy of everything you send and receive from the credit bureau, so it you use online dispute forms, cut and paste or save emails, responses and other data for your records.
Credit bureaus are required by law to respond and resolve your dispute letter within 30 days, though up to 45 days if you use AnnualCreditReport.com services.
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