Help Fixing a Credit Report

Fixing a credit report can involve disputing errors and improving areas reported by your creditors and lenders. The reasons for fixing a negative credit report are plentiful. These include the ability to qualify for loans and acquire low rates on financing. Rather than live with negative information on your personal file, be proactive and fix your personal report.

Credit Report

Credit reports are documents that lenders and creditors review after receiving your application for a loan or credit card. Banks don't offer credit and loans without first confirming a good credit history. Because your personal report details your complete credit history, lenders evaluate this information and based on their findings, they decide if you're creditworthy. Every consumer with a credit account has a credit report, and lenders and creditors pull reports from one of three bureaus -- Experian, TransUnion or Equifax.

Report Request

Fixing a credit report will first involve reviewing your report to see what creditors are saying about you. There are several ways to get your personal report such as contacting the individual creditors and paying a fee. A free approach is using AnnualCreditReport.com. The three agencies are each required to provide you with one free credit report annually. AnnualCreditReport.com permits consumers to order their reports online and view their documents from one or all three bureaus in less than five minutes.

Disputes

One aspect of fixing a credit report is removing any error or mistake. Read each account entry on your report carefully and keep a pen handy to circle inaccuracies. Pay attention to signs of fraud, such as unfamiliar accounts on your report. There are multiple ways to dispute credit report errors. Use the provided link on the AnnualCreditReport website to file a complaint; or you can write the reporting credit bureau and ask it to investigate incorrect information on your report. Send a copy with disputed items circled and include a brief letter stating why you're disputing a specific account. If possible, include copies of additional documentation to support your claim such as payment records. According to the Federal Trade Commission, the reporting agency or bureaus must investigate questionable items within 30 days.

Collections and Charge-Offs

Fixing the way you manage your debts is another key to fixing your credit report. For example, if you frequently miss payments, creditors and lenders will report lateness or nonpayments on your personal file; and lateness can trigger collection accounts and charge-offs. Collections and charge-offs stay on credit reports for up to seven years and lower your credit scores. Paying off an old debt doesn't immediately remove the negative item from your report. But as a courtesy, some creditors and lenders will update credit reports and either remove collections and charge-offs from reports or update the report to read, "paid collection" or "paid charge-off," if you agree to pay off the balance.