Even if you don’t suspect an error, it’s important to know what exactly is in your credit report. Many people don’t realize that there is a problem until they get turned down for a loan. By that point, a small error can become a major obstacle.
The first thing that you will need to do is get a copy of your credit report. This information is held by three major credit bureaus: TransUnion, Experian and Equifax. Different banks report to different bureaus. While a lot of the information will be the same in all three reports, there may be some variations. It’s crucial that you get all three.
You can get a free copy of your credit report once a year from each of the agencies through the Annual Credit Report Request Service. Alternatively, you can contact each of the credit bureaus directly, though they will charge you a small fee.
Some common errors
Once you have all three reports, go through them with a fine-toothed comb. The reports will contain information on loans, credit cards, lawsuits, court judgments, foreclosures and bankruptcy. Note anything that doesn’t look right.
* Are your name, date of birth and Social Security number correct?
* Is there any duplication within a single report? If you have the same loan listed several times, it will make your debt appear larger than it is.
* Is there a loan that is showing as outstanding, even though you have settled it in full?
How old is the information? Some information, like defaulting on a student loan, stays in the report until it’s settled. Things like lawsuits, late payments, foreclosures and Chapter 13 bankruptcy should be expunged after seven years. Chapter 7 bankruptcy is more serious and stays on your record for 10 years. If you have negative information in your report that is out of date, it can be removed.
Is there anything in the report that you do not recognize? It may be a simple error, or it could be identity fraud.
What do you do if you’ve found an error?
You can file a dispute with the credit bureau. You can do this by mail, over the phone, or through the bureau’s website.
You will need to verify your identity with a driver’s license or another form of ID, plus your Social Security number. You will also need evidence to support your case. This can be in the form of a canceled check, a copy of court judgment, or a letter from a creditor stating that the debt has been settled. Do not send the original documents. Instead, make photocopies and send those. Keep a detailed record of all of your correspondences with the bureau.
Once they’ve received your information, the bureau has 30 days to investigate the claim. They will verify your evidence against the creditor’s information and decide whether or not it’s valid.
Credit bureaus are legally required to provide accurate and up-to-date credit information. Thus, if they find that your claim is legitimate, they have to correct the report.
If the bureau rejects your claim, you can write to the creditor asking them to update the information. Once again, include copies of the supporting documents along with a detailed explanation.
If you’re still not successful, you can write a short 100-word statement explaining your case and request that the credit bureaus add it to your file. It will not effect your credit score, but can still influence whether or not you get a loan.
More information:
TransUnion
P.O. Box 390
Springfield, PA 19064-0390
800-916-8800
www.transunion.com
Experian
P.O. Box 2104
Allen, TX 75013-2104
888-397-3742
www.experian.com
Equifax
P.O. Box 105783
Atlanta, GA 30348
800-685-1111
www.equifax.com
Related posts:
- What is an Experian Credit Report?
- What’s a credit report?
- How to Get Your Equifax Credit Report
- Why Do You Need a Credit Report?
- How to Correct a Credit Report Error
FAQ: How do I check my Free Credit Report?
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