Tips for fixing an incorrect credit report.
Managing your credit score takes hard work, and if it is in a certain range, it could help you purchase a house, a vehicle, or other big-ticket items. However, if a credit bureau does not have the correct information included in your credit report, it could affect your credit score. Here is some advice on how to report and correct potential errors on your credit report.
What types of errors can exist?
Errors on credit reports can vary, and each can create unwanted hassle when you check your latest credit score. One issue could be a credit limit or account balance error. If your account balance is reported as being higher than it actually is, or if your limit is lower than what you are allowed, your score could be affected. Other more severe issues include identity-related errors, such as the wrong address or phone number, name misspellings, or your information being merged with someone else’s credit record. Be sure to check whether the accounts being reported by the credit bureau are all active, as closed accounts can sometimes appear on records and can even be falsely reported as delinquent.
Contact the credit reporting company
The first step in getting your credit report corrected is to contact the credit reporting company where you found the issue. The three major companies in the U.S. are Experian, Equifax, and TransUnion. You can send a letter in the mail, contact the companies by phone, or complete a credit dispute form online via each of their websites. When reaching out, include your contact information, a report confirmation number if available, a concise list of each error in the report, a request that the incorrect information be removed or corrected, and a copy of the report with the issues highlighted.
Contact the furnisher
You can also choose to directly contact the furnisher that provided the credit bureaus with your credit history. This could include credit card companies, debt collectors, apartment landlords, and more. If you have any type of loan, whether it is for a mortgage, vehicle, education, or another purpose, consider who could be providing the credit bureaus with your information. Once you’ve determined where the false information could be coming from, you will need to get the necessary information to contact them and dispute the errors.
Next steps
Once you have filed a dispute with a credit reporting company, it is required to investigate and send all necessary documents to the furnisher that provided your information. The company can either choose to correct your information or determine that your claim is frivolous. If your information is corrected, the furnisher must send your updated details to the credit reporting companies so your credit report will be corrected. If your dispute is deemed frivolous by the credit reporting companies, all hope is not lost. You can request that the credit reporting company include a statement explaining the dispute in your credit file. This statement will be included in future reports and provided to whoever requests your credit report.
An up-to-date, correct credit report can be the difference between a Poor or Fair credit score and a Very Good or Excellent one. Be sure to monitor your credit report frequently and check for any potential errors.
Learn more about credit reports by visiting the Five Star Bank Financial Education Hub.
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