How To Troubleshoot Your Credit Report
Sometimes, even computers can make mistakes. Not all of the data that is collected, calculated and put into your credit report will be accurate and it could cause errors to appear which will affect your final credit score. By keeping track of your credit and regularly checking your credit history, as it appears on the report, you can stay on top of things and correct any errors as they appear.
How Errors Happen
The one thing to keep in mind about how errors might appear on your credit report is that each agency collects thousands of bits of data, every day and the accuracy of it all is dependent upon the sources they get the data from. If any one reporting source has failed to keep their data updated and current, it may lead to errors appearing. This is yet another reason for keeping a close eye on the reports, for your own protection.
Human error will also account for errors that may appear. Clerical errors in the name, account numbers or even social security numbers can lead to erroneous accounts being placed in your report. The thing is, even if you suspect that it may have been a simple mistake on the credit company’s part, getting each one investigated can only help you in the long run. Identity theft is still rampant in the US and opening accounts with your basic information is still the number one past time for theieves.
How to Get the Errors Fixed
Under the Fair Credit Reporting Act, you have the right to be able to contact any credit bureau and the creditor in question and report inaccurate information in your credit history. Once you report the error, it is their responsibility under the Act to investigate and correct the error. It is your responsibility, however, to stay on top of things and make sure it gets done.
To report the error to the credit bureau that created the report it appeared in, you must send them the following information, in writing: the item you are disputing, why you believe it to be in error and request that it either be corrected or deleted. Be sure to include any documents you have that uphold your position, like receipts if it is an incorrect charge, as well as a copy of the report you found the error in. Send it by certified mail, so that you will then have a documented receipt of the bureau receiving it, as well as who exactly received it. Keep copies of all correspondence and if nothing is resolved in 30 to 90 days, keep at it, moving up the chain of command if necessary.
It does not stop with the credit bureau. They got the information from a creditor in the first place, so the next letter should be addressed to them. Everything that you outlined in your letter to the reporting agency, including your reasons for disputing it should be included in this one, as well.
You may get a quicker response from the creditor, but be patient. You are not the only account on their books, and checking for errors takes time. An accurate credit report is well worth the investment of time.
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