Your credit report provides information for the calculation of your credit score. It also contains your demographic information and a complete financial history that is used for important decisions like whether to give you a loan, job or insurance policy. The Federal Trade Commission estimates 16 percent of credit reports may include incorrect accounts and other errors that can hurt your credit rating. You have the legal right to report this information and get it removed.
Step 1
Check all three of your credit reports to see if the incorrect account appears on all of them or just one or two. TransUnion, Equifax and Experian collect and report their data independently, so you could find different items on each report. You can get free copies from annualcreditreport.com under a federal law that allows you to request them every year with no fee or obligation.
Step 2
Review the account to see exactly which information is incorrect. The account might not even belong to you. If it does, it might be listed with a wrong account number, credit limit or balance. It might show late payments when you have always paid on time. It might be under the wrong company name. You can report it for any type of inaccuracy.
Step 3
Check your records for evidence to prove the account is incorrect. Old statements, check copies and statements can be used to back up your assertion.
Step 4
Report the incorrect account to whichever credit bureaus are putting it on your report. They all allow you to make a report online, but the Federal Trade Commission says to send a certified letter so you have a dated receipt. A letter also lets you send copies of your evidence. Retain the originals in your records.
Step 5
Recheck the reports that listed the incorrect account to make sure the information has been fixed or removed. The bureaus have a month to check into your dispute and resolve it, according to Experian's Consumer Info website. The account should be corrected or removed if your challenge was found to be valid.
Tips and Warnings
- Monitor your credit reports every four months to catch any other incorrect accounts that might show up. The FTC says you can get a free copy from each credit bureau annually. Get one in January, the second one in May and the third in September.
- Experian warns that some incorrect accounts might appear on your credit reports because your identity has been stolen instead of through a simple mistake. Notify the three bureaus to put a fraud alert on your reports and make a police report if you have reason to believe you have been victimized.
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