A credit report is a tool used by lenders and creditors to determine the credit-worthiness of a potential client to repay his or her debt and to judge his or her history of making payments on time as agreed. A credit report ratings generally range between 350 and 850, and are accumulated by three major credit report agencies; Experian, Equifax and TransUnion. Credit reports contain information regarding payment history, collections, late or missed payments. Mistakes or misinformation on a credit report can lower scores and hamper a person's attempt to obtain credit or a loan. However, consumers can dispute items on their credit reports with a little patience and research.
Step 1
Order a copy of your credit report from any one of the three (or all three) credit bureaus. Consumers are legally entitled to one free credit report annually from the three report agencies. The Fair Credit Reporting Act, according to the Federal Trade Commission, requires the agencies to supply a consumer with a free credit report copy every 12 months upon request. You may contact them individually or order reports through annualcreditreport.com
Step 2
Examine the credit report for errors or misinformation. Items such as late or missed payments, liens, judgments, bankruptcy filings, collections or settled accounts, where the company you owe money to may offer to take less than is still owed on an account. If you disagree with what is reported in your credit report, you may dispute the item with the credit agency.
Step 3
List the items that you disagree with or wish to dispute. Note account numbers, dates, payment and billing information.
Step 4
Write a letter to all three credit reporting agencies regarding the disputed items. Explain the items and why you disagree with them. Provide as much detail as possible. Collect evidence or proof that the item in the report is in error. Make copies of receipts, billing statements, correspondence or notations of phone calls and individual's spoken to. Send copies of such evidence to all three credit reporting agencies as well so when the matter is resolved, changes can be made to all three.
Step 5
Send the letters to the credit bureaus by certified mail to:
Experian: Call them at 888-397-3742 - (their mailing address changes fairly frequently so check with them before mailing).
Equifax: P.O. Box 740241, Atlanta, GA 30374 800-685-1111
TransUnion: P.O. Box 1000, Chester, PA 19022 800-888-4213
Or you may write a request and send it to:
Annual Credit Request Service
P.O. Box 105281
Atlanta, GA 30348
Tips and Warnings
- Be prepared to wait. Credit bureaus are required by law to resolve disputes within 30 days, but reports generated from AnnualCreditReport.com are allowed up to 45 days. If the items you have disputed are not resolved to your satisfaction, note their reasons why and then send another letter regarding that dispute, including as much information regarding the item as you can. You may need to repeat this process more than once to gain satisfaction.
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