There are a number of reasons why you may need to make corrections on your credit report.A credit report is made up of a lot of personal information that you will want to make sure is correct.Some people think it is wise to check their credit report annually or a few months before a large purchase just to make sure that everything is in order.Others are concerned about the possibility of identity theft and want to make sure that their credit has not suffered as a result of fraudulent use.If you suspect you are a victim of identity theft, immediately contact the credit agency (through which the fraudulent activity was made) and they can guide you in what to do. You can also contact the Federal Trade Commission’s Identity Theft Hotline at 877-ID-THEFT (877-438-4338).Whatever your reason it is important to know how to fix something incorrect on your credit report.
Obviously the first step to correcting errors on your credit report is to review the actual report itself.A typical credit report contains the following information:
– Identifying information – This includes your name, address (current and previous), Social Security number, phone number and date of birth.
– Current and previous employment information – as last reported by creditors.
– Credit history – payment history for retail, credit cards, mortgages, banks, etc.
– Public records – tax liens, court judgments, bankruptcies.
– Inquiries – those who have requested and received a copy of your credit report.
Making sure that personal information such as addresses and employment history is easy enough, but what else should you be looking for?And what can you do if you do not have time to officially submit incomplete or inaccurate information to the CRA (Credit Reporting Agency)?
– If you no longer have or use an old credit card that’s listed as an open account, contact the card issuer and ask them to report it as closed. Then request that they inform the credit agencies so that it is corrected to be properly represented in your report.
– If you are currently applying for a loan, inform your lender of any incorrect information in your report. The lender can reorder an updated report after you’ve completed the corrections with the credit agency.(If there are open collections on your account, you’ll want to bring them current prior to applying.)
If you do come across information that is incorrect and does not have to do with reporting the closing of an old credit card account, follow these steps:
– The CRA and the organization that provided the information to the CRA (i.e. a bank or credit card company), have responsibilities for correcting inaccurate or incomplete information in your credit report. The first, thing you must do is to inform the CRA, in writing, that you believe that information on your credit report is inaccurate. (To fully protect yourself you should send the correction request information both to the provider of the information and the CRA)
– In addition to providing the CRA with your complete name and address, your letter to them should clearly identify each item in your report that you are disputing.You must enclose material evidence that will back-up your dispute and request for deletion or correction.
– The CRA must investigate the items in question.This process can usually be completed within 30 days.
– If your appeal is granted and corrections are made, then at you request, the CRA must send notices of those corrections to anyone who received your report in the past six months or in the past 2 years if an employer had pulled your credit information.
Keep in mind that information can only be removed if it is incorrect.Sorry, but you cannot have unfavorable information removed from your credit score.The Fair Credit Reporting Act stipulates `negative information that is correct must remain in your file for up to 7 years from the last activity on the account.’