If you get your free credit report once a year and find mistakes, you should dispute the information and try to get it changed on your report. When you dispute the information, you are protected by the Fair Credit Reporting Act, which says that all credit reporting agencies (like Experian, TransUnion, etc.) must respond by looking into your creditors.
If the information you are disputing turns out to be wrong, it will be taken off your credit report or fixed within 30 days. Also, if the creditor can't prove that their information is correct, it will be thought to be wrong and have to be changed.
What could be up for debate?
When you get your credit report, you should keep an eye out for mistakes in the following areas:
Incorrect information: You may find that creditors have put things in your file about late payments that you don't agree with. If you have proof of when the checks were cashed, like cancelled checks or bank statements, it will be easier to get the late mark taken off.
Old, out-of-date information: On your credit report, negative account information can only be reported for seven years after the first delinquency, except for Chapter 7 bankruptcy.
Look out for accounts on your credit report that you didn't open, which are called "fraudulent accounts." This could mean that your identity has been stolen or that your account information has been mixed up with that of someone with a name similar to yours.
How to Start a Credit Claim
You should write down what's wrong and file it. You can do this by sending a letter to the credit reporting agency or by filling out their online form. The Fair Credit Reporting Act says that the credit reporting agency has 30 days to look into the dispute and decide what to do. You will then get a written report of the results and, if any changes have been made, a free copy of your credit report.
The best way to dispute something on your credit report is to take a picture of it and send it with your letter. Circle and number the dispute on the credit report. In your letter, you should include a number for each piece of information you disagree with and explain why you disagree with it.
To get things done quickly, make sure to include:
Your full name and address for mail
Your birth date
Number for social security
Name of the creditor and the account number of the item you want to dispute.
Don't forget to sign it, either.
Different Ways to Settle a Dispute
If you disagree with something on your credit report, you can also talk to the creditor directly. If you tell a creditor that they put wrong information on your credit report and they don't change it, the FCRA says that they can't put that item on your report at all without putting a note that you are disputing the information. If the information turns out to be wrong or inaccurate, it must be changed or taken off your report.
What to Do If the Argument Doesn't Get Solved
It's not always easy to find a solution to a disagreement. You can file a dispute with the National Consumer Assistance Center if the dispute process doesn't give you a satisfactory result. Having the case re-investigated might or might not result in an item being removed from your credit report. However, you can be sure that you will need proof in writing to get the credit bureaus to remove any information. Even if you are successful in getting items removed from your credit report, they may show up again if the creditor wants them to.
If you think the credit bureau has broken the FCRA, you can also talk to your state's Attorney General's office. If you think the credit bureau or a creditor is breaking the law, you can sue them in either state or federal court. If you win, you would get back all of the money you spent on your lawyer and the money you lost.
