How to Challenge Credit Reports

Having a regular access to credit report is a good way of maintaining your credit score in good condition. Of course, there should be a reason for getting a credit report. You have to do a close and thoroughanalysis of your reports, scrutinize each detail and discover an error or two. If you find one or a few, keep calm. Mistakes on the credit reports are not rare and the agencies are skilled at collaborating with consumers when it comes to resolving disputes and fixing your credit reports.

If the mistake is real, then all it takes is to go through motions and wait for the procedure to complete.

Determining the Errors

There are five primary sections on a credit report. The data contained on each section vary from State to State. These sections include Credit Summary, Account History, Personal Details, Credit Inquiries, and Public History.

The Account History, which contains the largest volume of information, is vulnerable to errors. Therefore, you are responsible for checking the whole credit report and identify potential errors, which must be documented if you institute a dispute.

The errors vary, too. They can be minor such as having your name or address misspelled, to major ones such as having no resemblance between your real name and the name that appeared on the credit report. In the latter case, you should make a dispute.

Statistics and figures on your credit report can have mistakes as well. Such refers to repayments made, the amounts owed, and the dates and the balance. Take down each mistake for easy reference.

Rectifying and Disputing

After your credit reports are checked for errors and the errors documented, the next step is to communicate with the credit reporting agency. A company providing for credit reports have the charge in assisting consumers in rectifying the mistakes found as provided for by the Fair Credit Reporting Act (FCRA) in the United States.

Both the credit reporting agency and the consumers should cooperate towards such end. But it does not exclude third parties from getting involved if the information is obtained from a company engaged in providing data to credit reporting agency.

Prepare a correspondence addressed to the proper bureaus, stating clearly your purpose, attach a copy of the document containing the mistake you are disputing, with an explanation why the information is erroneous. Supporting documents must also be included in the attachments. Examples of supporting documents are receipts (photocopy or certified copy), contracts, and invoices.

Write clearly your facts and specify that the disputed facts or mistakes pinpointed be corrected. If you are using the e-mail system to communicate, request that the agency will send a return receipt (assuming a request is sent). This will help you keep updated on which bureau has received your e-mail. The credit reporting bureaus have 30 days from receipt of your letter to make the necessary actions.

After all the corrections are completed, the credit report agency that acted on your request is obliged to furnish you a copy of the new credit report with a separate document detailing the changes made. The new credit report will be your tool when you have to apply for a new loan, re-negotiate the interest rate charged against your loan application, or ask for reconsideration on your declined loan application.