Having a good credit score is important if you want to be able to get loans and other forms of credit. Negative items on your credit report can cause you to pay higher insurance rates or be denied a credit card, loan or employment. Check your credit report periodically to make sure there is no incorrect information included. Every American can receive one free copy of their credit report from each of the three major credit reporting agencies each year. If you have been denied credit or employment due to information that was gathered from a credit reporting agency, the creditor or employer will send you a letter indicating this. If you receive such a letter, you are also entitled to a free copy of the credit report that was used to make the decision to not extend credit or an offer of employment to you.
Step 1
Order a copy of your credit report from one, two or all three of the major credit reporting agencies. These agencies are Experian, TransUnion and Equifax. See the Resources section below for the official website to request a copy of your credit report, or contact the agency directly if you have been declined credit or employment based on your credit report.
Step 2
Contact the credit reporting agency in writing, online or by phone if you see an item that is incorrect. Include copies of any documentation that you have to prove your case. The Federal Trade Commission recommends that you never send original documents.
Step 3
Wait 30 days for the credit reporting agency to review and investigate your claim. If it is found to be a frivolous claim, or is not settled in your favor, ask the agency to include your statement and documentation in your file. Also, ask them to forward your statement to any creditors that may have checked your credit in the past six months.
Step 4
Contact the creditor who reported the misinformation. Send them copies of the statement that you sent to the credit agency and any supporting documentation.
Step 5
Order a new copy of your credit report after your dispute has been processed to be sure that everything was corrected. Also, contact any creditors or potential employers who received misinformation and check that they have received an updated copy of your report.
Tips and Warnings
- If you have negative information on your credit report that is not an error, you must wait for the reporting period to end. For most negative information, this time period is seven years. Bankruptcy will appear on your credit report for as much as 10 years.
- Be vigilant that you do not use any website other than annualcreditreport.com to request your annual free credit report. The Federal Trade Commission reports that several websites exist that try to sell you a service along with your credit report.
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