How to Use a Personal Statement to Protect Credit

The Fair Credit Reporting Act lets you protect your credit rating by disputing incorrect entries on your TransUnion, Equifax and Experian credit files. The Federal Trade Commission explains that the agencies have to verify their information with the providers and erase it if this is not possible. Sometimes a lender or other provider will produce verification even if you do not agree with it. You can add personal statements to your credit files to tell your side of the story when this happens.

Instructions

1

Review your credit reports to see if the information you do not agree with appears on all three of them. Money Management International, a financial counseling website, explains that the three reporting agencies are separate companies, so their reports often differ. You only need to add statements to the files that contain the offending information.

2

Write out a short, fact-based statement. It cannot be longer than 100 words, according to Equifax. Do not place blame or go into a long explanation of why you do not agree with the information in your file. Lenders give it more credibility if it explains your position clearly and provides facts to back you up. The Federal Reserve Bank of San Francisco warns that reporting agencies can refuse to accept statements they consider frivolous or irrelevant.

3

Mail personal statement copies to the credit reporting agencies that have the incorrect information in your files. Money Management International explains that you can find the current address on the agency websites. Keep a copy of the statement for your own records.

4

Check your credit files to make sure your personal statements are included. The FTC explains that the reporting agencies are required by law to give you one free report every year if you get them through annualcreditreport.com. Your statements should be part of the appropriate reports.