How to fix a credit report error?

Wouldn't you be surprised to get your credit report and discover a delinquent account mistakenly attributed to you or an application that you didn’t submit? Even the smallest error could seriously dent your chances to qualify for a credit card or loan down the road. The solution is obvious: you need to fix your credit report. 

Why do you need a credit report?

Just as you would not like to lend money to a complete stranger, banking institutions don’t want to give credit cards and loans to applicants without knowing that they are trustful and reliable borrowers. 

Some years ago banks used to call other lenders that people mentioned in their applications to get additional information. Nowadays, they just order a credit report from one of the three credit bureaus – Experian, Equifax or TransUnion. 

A credit report is a gold mine of information about your financial behavior. It lists what types of loans you have had, the date of opening your accounts, current balances, late or missed payments, monetary judgments, etc. 

Generally, your borrowing and payment records remain on your credit report for seven years. Bankruptcy notice is listed for ten years. Any negative items will significantly lower your chances to get a loan or a credit card. That's why it is important to make sure that your credit report is accurate and error-free.  

What can you do if you find an error?

Errors in credit reports happen from time to time. For example, you can find an account that belongs to the person with the same name as yours. Or your ex-spouse’s credit problems can be still linked to you. 

According to statistics, most errors can be included in the broad category of "late payments." What can you do to fix your credit report? First of all, start to dispute the error as soon as you notice it.

Clearing your good name

Here are several guidelines to make the process easier: 

1. Gather evidence that your credit report has an error. 
2. Make copies of all related documents because you may need to send them several times.  
3. Send a letter via registered mail with all the documents and instructions on how they need to fix your credit report. Include the following information: 
•    Your full name, address, date of birth, and SSN
•    The creditor’s name and account number of the disputed information
•    Specific instructions on what exactly you want them to do

Under the Fair Credit Reporting Act (FCRA), credit bureaus need to investigate your claim within thirty days. After that they will inform you about the results of their investigation. If the disputed item can't be verified, they will delete it. If an investigation isn't resolved in your favor, you can add your version of the dispute to your credit file.

To be on the safe side, check your credit report at least once a year. No one cares about the accuracy of your report like you. Keep in mind that the three credit bureaus do not necessarily share information with each other, so the content of your files can differ at each bureau. It makes sense to check your credit report from each one.