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| How Credit Affects You |
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Correct Errors on Your Report
Credit reports may contain incomplete or inaccurate information. For example, if someone has the same name as yours, his or her credit information may mistakenly be included in your report. If that person did not repay an auto loan and it mistakenly is placed on your credit report, it can negatively affect your ability to get a loan, even though it is an error. It’s up to you to alert the credit agencies and get the errors fixed. No one else will do it; in fact, no one else can do it!
Steps to Correcting ErrorsIf you find an error in your credit report, react immediately and follow these steps:
- Using certified or registered mail, send the credit-reporting agency a dispute letter detailing the information you think is inaccurate. Include copies (not originals) of documents that support your position and prove your identity. In addition to providing your complete name and address, your letter should clearly identify each item you dispute, state the facts, explain why you dispute the information and request deletion or correction. This sample dispute letter provides a template that you can follow.
- Credit-reporting agencies must investigate the disputed information within 30 days and provide you with a response within a reasonable amount of time (35 days is typical). If you do not receive a response by then, you can send another letter, referencing your first letter.
- If the investigation shows that there is inaccurate information in your report, all three credit agencies must correct the information.
- When the investigation is complete, the credit-reporting agency must give you the written results and a free copy of the revised report if a change has been made.
- If an investigation doesn’t find an error, but you still believe your credit report is inaccurate, you can contact the creditor directly and try to resolve the problem.
- You also have a right to explain your side of the story on the credit report if the issue remains unresolved. This is called a consumer statement. To do this, you may write up to 100 words to explain the situation. The statement will be added to your report. However, you need to be cautious about adding too many consumer statements, as lenders may view this negatively. This sample consumer statement letter provides a template that you can follow.
- Positive information on your credit history will help your score and help lenders make an informed decision on whether or not to lend you money. If some of your positive credit history does not appear on one or more of your credit reports, you can request to have it added. Contact the three agencies with a request to add the positive information to your file, and they will verify it with your creditor. This sample positive information letter provides a template that you can follow.
- If you don’t receive a response from the reporting agency after writing and phoning them several times, notify the Federal Trade Commission (FTC) and/or your state Attorney General’s office in writing, sent by registered mail so you can prove you sent them the letter.
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