How to Remove Errors on Your Credit Report

Consumers understand that lenders such as banks and credit card companies need to review their credit reports before making a lending decision. What some consumers do not realize, however, is that employers, insurance companies and landlords also routinely base decisions on the contents of an applicant's credit. If your credit report contains errors that lower your score, you could find yourself passed over for a job you're well-qualified for or paying higher insurance rates than you deserve. To ensure that each consumer possesses an accurate credit record, the Fair Credit Reporting Act gives you the ability to contest any information on your credit report that is either inaccurate or that you do not recognize.

Difficulty:

Moderate

Instructions

1. Obtain each of your credit reports from TransUnion, Equifax and Experian. If you have not requested your free credit report for the year, you can do so at the Annual Credit Report website. Print two copies of each credit bureau's report.

2. Examine your credit reports line by line for errors. Mistakes you may find on your credit report include: late payments, accounts that do not belong to you, incorrect addresses and obsolete items.

3. Write dispute letters to Equifax and TransUnion explaining any mistakes you found within your credit reports. You can dispute numerous errors in the same letter.

4. Mail each letter along with a copy of each respective credit bureau's report that reflects the error to:

   Equifax

   P.O. Box 740241

   Atlanta, GA 30374

   TransUnion

   P.O. Box 1000

   Chester, PA 19022

   Experian

   P.O. Box 2104

   Allen, TX 75013

   After receiving your dispute, federal law requires that the credit bureaus investigate the disputed information by contacting the original information provider and requesting verification of the data. If the information provider cannot verify that the disputed entry is correct, the credit bureaus will remove it from your credit record.

Tips & Warnings

• Each credit bureau compiles credit reports independently of the other two bureaus. Because of this, your credit records may not contain identical information.

• You have the right to file suit against any information provider that verifies inaccurate information to the credit bureaus.

• You don't need proof that the entry under dispute is actually an error. If you have proof, however, you can submit the proof with your dispute letter.

• The Federal Trade Commission recommends that consumers send their disputes Certified Mail Return Recipient Requested. The postal service will provide you with documentation proving that your letter arrived. You will also receive a record of the date your dispute was received.

• The FCRA gives each credit bureau the right to refuse to investigate further disputes if an individual repeatedly disputes information that the bureaus previously validated as correct.

• Make copies of anything you send to the credit bureaus. The credit bureaus are not obligated to return your credit reports or any supporting documentation connected to your dispute.

References

• MSN Money; How Bad Credit Can Cost You a Job; Liz Pulliam Weston; 2011
• Federal Trade Commission; The Fair Credit Reporting Act (Section 611/p. 45-50)
• Federal Trade Commission; Your Access to Free Credit Reports; March 2008
• Fight Identity Theft; How to Dispute Credit Report; Dave Nielsen; 2011
• Fight Identify Theft; Credit Bureau Contact Information; Dave Nielsen; 2011

Resources

• The Federal Reserve Board; Improving Your Credit Score; June, 2010
• Bankrate.com; How to Get Your Free Credit Report; 2011