How to Fix Mistakes in Credit Score

Mistakes in your credit score can cost you a lot! Our credit scores are checked each time that we apply for financial services such as a loan or mortgage. If there are mistakes on your credit report it could affect the interest rates that you are offered or even worse, you could be denied the financial services that you are applying for! This is the reason it is so important to check your credit report regularly.

Difficulty: Moderate

Instructions

Things You'll Need:

• Current credit report.

1. Federal law requires that each consumer receives one free credit report from each bureau per year free. In order to receive your free credit report you can call 1-877-322-8228 or you can request your credit report online. Once you have received your credit report you need to check it thoroughly.

2. If you find mistakes in your credit report, you can dispute them. According to The Fair Credit Reporting Act, consumers have the right to get mistakes removed from their credit reports. This is the procedure that needs to be followed in order to get mistakes removed from your credit report.

3. You will need to contact both the Credit Bureau and the person or business that has reported the information incorrectly about the discrepancy on your credit report. If you have any records to corroborate your dispute such as receipts or cancelled checks, they will need to be copied and the copies sent with the letter of dispute to both the bureau and the business.

4. The dispute letter needs to include your name, address, and phone number. It also needs to include the name of the account and the reason that you feel that the information on the current credit report is not accurate. It will be helpful to include a copy of the current credit report that you have with the information you are disputing highlighted sent in with the letter. The letter needs to be sent certified mail with return receipt requested so that you have proof that you mailed the dispute as well as to the date it was received by the credit bureau.

5. The credit bureau then has 30 days to look into your dispute and then will send you something back in writing. They will then forward your dispute on to the business in question who will then have to look into the matter and have to report on the situation to the bureau once they have investigated the incident. Once everything is said and done the credit bureau will give you the results of the investigation and they should send you out a new credit report if yours was changed due to the investigation. You may ask them to send out a correction notice to any company who has inquired about your credit for the past six months. Once your credit score is correct you won't have to worry about being turned down for that loan again!

Tips & Warnings

• If you find a problem on one credit report, check with the other bureaus as if there is a problem on one report it may be on all three bureaus.
• Check your credit report and credit scores often to avoid costly errors! Mistakes should be taken care of quickly.

[Alishamitchum]

on 8/22/2009 Great article

[esperd]

on 6/20/2009 good to know