How to Fix Credit History
Most consumers understand that their credit history will be checked when they apply for a line of credit. What some consumers may not know is that their credit profile may also be checked when they apply for insurance and even as part of the application process for certain jobs. Studies have shown that a large percentage of credit reports contain at least one error. It is important that consumer’s regularly check their credit profile and fix their credit history when an error is noted.
- Difficulty:
- Moderate
Instructions
Things You'll Need
- Computer with Internet Connection
- Printer
- Highlighter
- Access to a Copy Machine
- Financial Records
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1
Obtain a copy of your credit report from all three of the major credit bureaus: Equifax, Experian and TransUnion. Consumers in the United States are allowed to receive a free copy of their credit report yearly from each of these three credit reporting agencies. To receive your free credit report, visit the Annual Credit Report website.
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2
Print out a copy of each of your credit reports. With your highlighter, mark any errors or omissions that you see. If you have a credit account showing a late payment but know that you’ve never paid late, mark that. If there is a credit account on your report that doesn’t look familiar, mark that.
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3
Compose a credit report dispute letter in your word processing program. It is important to list every error on your credit report in these letters. You may notice that the mistakes on one credit report are not duplicated on another; each company usually has slightly different information. For a sample credit report dispute letter, visit the Privacy Rights website.
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4
Make a copy of any supporting documentation that you may have. This comes in handy if a credit bureau report is showing a balance due on an account when in fact the account is paid off. Sending a copy of the paid in full notice from the creditor will be useful to the credit reporting agency. If you do not have any supporting documentation, still send the dispute letter as the credit reporting agency can check with the creditor directly.
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5
Print and mail the dispute letters to each of the three major credit bureaus. You can usually find the address on the credit report itself. In the event that it is not listed, there is a link in the Resources section of this page.
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6
Wait for a reply from the credit bureau agency confirming that the error was fixed. Credit reporting agencies will typically include a new, corrected copy of your credit report when they send confirmation that your credit history has been fixed.
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Tips & Warnings
Be leery of third parties who claim they can fix your credit history for a fee. Federal law regulates the credit reporting process and some third party agencies use less then legal techniques to fix your credit.
