It's not at all uncommon to discover errors in your credit report, but fixing those errors can seem daunting. The process doesn't have to be a challenge, however. The Fair Credit Reporting Act (FCRA) spells out guidelines for correcting errors, and credit reporting agencies are obligated to investigate if you file legitimate disputes using the steps outlined by the Federal Trade Commission (FTC).
Step 1
Circle all the mistakes in your credit reports and cross-reference them in a letter to each of the bureaus: TransUnion, Experian and Equifax. You must ask each to fix the errors because they don't share dispute information.
Step 2
Explain the basis for each dispute listed in your letter. Make sure you have solid grounds to challenge every item because the FCRA lets the credit bureaus refuse to deal with frivolous disputes. Make copies of contracts, money orders, checks and bills that support your dispute, and include them with your letter.
Step 3
Mention the FCRA's 30-day requirement in your letter, and state that you expect the errors to be fixed within that time frame. The law gives credit bureaus 30 days to conduct an investigation and try to verify each item's accuracy. They must fix or remove information that is not validated. You may be taken more seriously if your letter makes it apparent that you know this and understand your rights.
Step 4
Mail your disputes using a method that gives you proof of delivery. The FTC recommends Certified Mail, but you can also use a flat-rate priority mailer if you have a lot of enclosures. This will tell you when each bureau gets your dispute, which is when the 30-day period begins.
Step 5
Make sure that each bureau fixes the errors once the investigations are complete. You will be notified of the results, and you are entitled to free report copies so you can verify that the bureaus actually followed through with the corrections. Send another letter demanding that they do so immediately if any unverified information still appears on your reports.
Tips and Warnings
- Add a personal statement to your credit reports if you cannot get an error removed. Sometimes a creditor will validate information that you still believe is wrong. The FCRA lets you include a statement explaining your position. It will be given to creditors and others who review your credit reports.
- Don't pay anyone to fix your credit report errors, the FTC warns. Credit repair companies often make overblown promises, but there is no reason to pay for this service. They will do the same thing you can do on your own.
Things You'll Need
- Credit reports
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