Identifying and resolving errors on your credit report

Posted by Robert Bain

June 6, 2008

by Robert Bain

Problems with credit reports are more common than most of us might think. In fact, it should make your nervous enough to review your own credit reports if you haven’t done so recently. There are three different credit reporting bureaus and they will send you a full report once a year at no charge. Even if you have to pay for them though it is going to save you money in the overall scheme of things.

There are many reasons why information on credit reports isn’t accurate. In most cases it has to do with lenders not doing their part with getting the updated information turned in. They may gladly take your money to pay off an account but then fall through with reporting that information timely. Data entry problems from employees can also be factored into this equation of problems.

Other types of errors on credit reports though indicate someone else is accessing your information. They may have opened accounts in your name and now you are getting negative marks on your credit. Regardless of the type of errors on your credit report though they are going to affect your ability to get credit as well as the interest rates you will pay for it.

The best way to make sure there aren’t any errors on your credit report is to evaluate them regularly. Make sure you look over your reported information from all three of the reporting agencies. Sometimes a mistake is on all of them and other times it is just on one of them. It can take a very long time to get these issues resolved so the sooner you can get the process started the better.

It is going to take time for you to go over all of this information. Carve out several hours to look at the accounts that are on each one. You need to verify they are yours, the balances are correct, the payment history is correct, and read any notes on the accounts. If you find mistakes or things you aren’t familiar with make sure you mark them for further evaluation.

There is a dispute form that each of the three credit bureaus use. You can easily download it from the internet and print it out. It is best to write a short but detailed letter about the error, why you dispute it, and discussing the evidence you have to verify it. Make sure your letter has all of your contact information on it as well.

You want to be very organized in your efforts too. Write down the dates you send materials out. Give them at least 30 days to review it before you follow up with them. Write down the dates you call, who you talk to, and the conversation that took place. If you get any letters from them file them with your original documents. If they ask for further materials make sure you send out copies as quickly as possible.

If you find there are problems with your credit report, you need to take care of them. Don’t let things continue to compound. It is going to take time and effort on your part to get them resolved. If you don’t contact the credit bureaus though they are going to continue assuming what they have on file for you is correct. This is going to mean you pay more for credit or that you get denied when you apply for it.

About the Author:

Robert Bain is fascinated by the secret credit industry. He follows personal credit related issues such as credit cards, debt relief, home owners loans, high risk personal loan and scams.

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