Not Made Of Money

Credit report errors can happen to everyone regardless of their credit rating. A person with good credit may find that a family member’s less than stellar information has been inappropriately posted onto their credit report. On the other hand, someone with a bad credit history may find that a negative credit item that should have fallen off their report several years ago has reappeared on their current credit report. Whatever the cause of the credit report error might be, the steps to remedy the problem are the same.

The first step to correcting credit report errors is to discover them. It is imperative that you check out your credit report at least once a year. Fortunately, U.S. law entitles us to one copy of your credit report each year from each of the three credit reporting agencies. You can request all three of them at one time, or select one agency at a time. (I prefer this method because it allows me to view our credit reports three times each year, but either method is okay.)

Once you’ve gotten access to your credit report, be sure to look it over carefully. Do you recognize each creditor listed? Is the status of each of your accounts reported accurately? Pay specific attention to your payment history, as well. A close inspection of your credit report should reveal any errors that might be hiding there.

After you’ve determined which information on your report is incorrect, you’re ready to get it corrected. If you’re accessing your report online, getting the process started may be as easy as clicking on a button. Look for a button that says something like “report an error.” From there you should be able to give details about which item is incorrect and how it is incorrect. Don’t forget that you could also choose to write a letter to the credit reporting agency that reports any errors you find. The address should be found towards the end of your credit report.

In many cases, reporting the problem to the credit reporting agency is enough to get it corrected. The agency will contact the company involved and ask them to verify the information they’ve reported. The company will then realize their mistake and update their records. Occasionally, though, you may have to dig a little deeper to get the problem corrected.

In cases where the company reporting the bad information doesn’t immediately realize their mistake, you will need to contact them directly. You should write them a letter (you can get their contact information from the credit reporting agency, if necessary) outlining the situation. Explain to them what their mistake is and provide copies of any documents you have that support your position. For instance, if you settled an old account for a lesser amount and it is still being shown on your credit report as past due, you should provide a copy of your payment for the settlement amount and a copy of the settlement letter. Finally, your letter to the company should insist that they correct the information they have reported to the credit reporting agencies.

After you’ve worked out any discrepancies with the company that has reported incorrect information to the credit reporting agencies, don’t forget to follow up with the agencies to make sure that the information has been corrected. Then, you can relax a bit until it’s time for your next credit report review.

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