What Can I Fix on My Credit Report?

The information on your credit report affects your credit score, which in turn influences your ability to obtain new credit accounts and low interest rates. Under the Fair Credit Reporting Act, you have the right to dispute incorrect information by sending a letter to the credit bureau that provided the credit report with an error. Look for a few major types of information to fix.

Inaccurate Late Payments

One type of error you might find on your credit report is when one of your accounts reports that you paid late when you actually made that payment on time. Because your payment history makes up 35 percent of your credit score, inaccurate late payments can drag your score down a significant amount, especially if there is more than one of them. A canceled check or bank account statement listing an automated debit can prove that you made the payment on time and help you remove the late payment notation.

Extra Accounts

Sometimes accounts that do not belong to you end up on your credit report. This is the most common type of error, according to Kiplinger. It could occur if someone has the same name as you and the files get mixed up or if someone applies for credit using your name and Social Security number. Dispute the account as not belonging to you. If you are a victim of identity theft, you might need to have a police report to get the fraudulent account removed from your credit report.

Other Errors

You can dispute and fix any other type of error you find on your credit report. For example, you might have paid off an old collection account but it is still listed on your credit report as being unpaid. Your credit card might be listing an incorrect account opening date or an incorrect credit limit that is dragging your score down. Or one of your major credit card accounts might be missing from your report, in which case you should contact the credit card company to straighten it out.

Long-Term Fixes

If the negative information on your credit report is accurate, you will need to repair your credit gradually by replacing it with positive information. For example, having a balance on a credit card that is close to the credit limit on the card hurts your credit score. If the balance and limit are correct, the only way to fix this is by making extra payments to reduce the balance on the credit card. Or if you have made late payments in the past, focus on paying on time consistently to build more positive payment history.