Disputing Inaccuracies on a Credit Report
Inaccuracies on your credit report can cost you money or cause your credit applications to be denied. The Fair Credit Reporting Act (FCRA) guarantees consumers the right to accurate information in their credit bureau files. The FCRA outlines the process for disputing inaccurate information and requesting its removal from your credit report. Inaccurate information can lead to lower credit scores, which can increase the interest you pay on loans or prevent application approvals.
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Looking at Your Report
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You have the right to receive one free credit report each year from the three main credit bureaus. These reports show the information that your creditors report to Experian, TransUnion and Equifax. Along with information about the amount of debt you have and whether you make payments on time, the reports show your personal information -- such as your address -- and any judgments, bankruptcies and arrests. AnnualCreditReport.com is the only company authorized to provide your free reports, according to the Federal Trade Commission. If your report has inaccurate information, you should contact the reporting company and the credit bureau to take advantage of your rights under the FCRA.
Informing Companies of Inaccuracies
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Send certified letters to the reporting bureau and your creditor about the items you believe are inaccurate to file a dispute. Include documentation supporting your claims and ask the credit the bureau to remove the incorrect information. Your report contains the address of the credit bureau, and your monthly statement from your creditor contains the creditor's address. Some creditors have specific addresses for disputes. Your creditor must include a report of your dispute the next time it reports to the credit bureau. Disputes can be filed online, but the Federal Trade Commissions recommends filing the dispute in writing with a certified letter.
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Documentation
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The types of documentation that will support your claim depend on the item you are disputing. If your birth date is wrong on your report, you can send a copy of your birth certificate. If you are disputing late payments, a copy of the check or bank statement showing the debit for your payment and the date will suffice. If the credit bureau has your address wrong, you can send a copy of your electric bill.
Investigation
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The credit bureau must perform an investigation of your claim after it receives notice of your dispute. It forwards your dispute and accompanying information to the creditor that provided the information. The creditor does an investigation, and if it finds an error in its reporting, it must notify any bureau that what it reported was wrong and must provide the correct information. The inaccurate information is removed from your credit report. The credit bureau has the right to deny your dispute as frivolous if you do not send enough information for a reasonable investigation or you disputed the same item in the past. The credit bureau typically has 30 days to investigate your dispute, and if the bureau cannot verify the validity of the item in that time frame, the item must be removed from your report. When the investigation is complete, the credit bureau notifies you in writing and provides you a free credit report that does not count as one of your free annual credit reports.
Considerations
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If the investigation does not support your claim, the information will remain on your report. You can write a statement of 100 words or less for the bureau to include on your report notifying future creditors that you dispute the report listing. While this statement will not affect your credit score, it allows you to tell your side of the story, which could influence a lender's decision.
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