Your credit report says a great deal about your financial health, and it can affect your ability to buy a car, apply for a mortgage on a house or even get a credit card. Unfortunately, your credit report can sometimes be negatively affected by errors in the credit agency or creditor's office or by identity theft. In the event of a discrepancy, it is important to contest your credit score by fixing errors as soon as possible so that your credit will not be adversely affected in the long term.
Step 1
Gather proof. To prove an item is indeed incorrect and negatively affecting your credit score, you must submit evidence to the credit agency. This includes receipts or credit statements that prove that an error has occurred. Make two photocopies of each piece of evidence. Store the original and one photocopy in your files, and send the second copy with your paperwork to the credit bureaus.
Step 2
Send a letter to the credit bureau that identifies the incorrect information. Under the Fair Credit Reporting Act, the responsibility of investigating and changing errors on your credit report falls on both the credit bureau and the creditor that reported the information. To convince the credit bureau to activate an investigation, you must send the bureau a letter through the mail. Identify the error, explain why you feel the information is incorrect, present proof to support your claim and formally request that the information be removed from your report. Attach the photocopied proof to the letter.
Step 3
Wait patiently for the investigation to be completed. According to the Federal Trade Commission (FTC), the credit bureau usually investigates a questionable item within 30 days. Afterward, you will be given a decision as to whether or not the error will be corrected. If your credit report is changed after the investigation, you are entitled to a free copy of your revised report. You must purchase your credit score separately to see if it has been positively affected by the change. It may take time for the credit score to catch up with the changes to your credit report.
Step 4
Check all three credit reports. As soon as the information has been corrected on the credit report, order copies from the other two credit bureaus. Companies and creditors often report your payment information to one of the three major bureaus (Experian, TransUnion and Equifax). Potential creditors can pull your credit score from any one of the three, so it is important to thoroughly peruse all three reports for errors.
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