Ed note: Now that you know how to read your credit report, you probably need to know what to do if you found something incorrect on it. The bad news is that it’s not a super-simple process. The good news is that Credit Karma is here to help guide you through it.
In 2013, the Federal Trade Commission found that one in four consumers identified errors on their credit reports that might affect their credit scores. As your credit report can impact whether you get a job and is used to calculate your credit score, it’s important to ensure that your credit reports are as accurate as possible.
While disputing mistakes directly with your lenders may be the most straightforward approach, as they’re required to send corrected information to every bureau they report to, you should also send a written copy of your dispute to the bureaus to protect your legal rights under federal law. Here are five steps explaining how to do so:
1. Circle errors on your reports.
Once you have copies of your credit reports, scrutinize them carefully and circle any major errors you find. In particular, watch out for common mistakes like erroneous account details or fraudulent accounts.
2. Gather proof to support your dispute.
In order to convince the bureau that they need to change your report, you’ll need proof to support your claim. Don’t worry – your documentation can be as simple as a copy of your credit card statement to show that your credit limit is $3000, not $300.
4. Write a letter.
While filing a dispute online may be more convenient, the FTC recommends sending a letter instead. Not a wordsmith? Don’t fret – you’ll just need to state what you’re disputing and why, and ask them to remove or correct the information.
5. Make copies of everything.
It’s important to document the process. Make copies of your dispute letter, supporting documents and marked-up credit report. This could save you a lot of time if your dispute doesn’t work and you need those documents to try another route.
6. Send everything to the bureaus and wait.
Lastly, send everything to the bureau via certified mail. They’ll typically review it within 30 days, note that item(s) on your report are being disputed and forward any relevant data you provided to the company that reported the information. Then, the information provider will investigate and report back to the credit bureau.
If the dispute is successful, the company is required to notify all three credit bureaus so they can correct the information they have on your file. Then, the credit bureau will report the results back to you and send you a copy of your updated credit report. If the dispute isn’t successful but you still want the inaccurate information removed, you can try disputing again or filing a direct dispute with the furnisher of your line of credit if you haven’t already done so.
Bottom Line:
In order to ensure that your credit reports accurately represent your credit history, be sure to dispute errors and continually monitor your credit. With your financial situation on the line, the time you put into the process will be well worth it.
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