What to Do About Wrong Information at Credit Reporting Agencies

Your credit report reflects every aspect of your credit management, good and bad. So if any information is wrong and reads negatively on your credit report, you may have a hard time obtaining a mortgage, car loan or even getting a new job. The Fair Credit Reporting Act allows consumers to dispute incorrect information on their credit reports, and in turn the reporting agency must review your request within 30 days.

Process

Write an explanation of what appears wrong on your credit report. Be as specific as possible, and include copies of any documents (court papers and bank statements, for example) you have to back up your claims. If you're dealing with multiple errors, provide separate paragraphs or bullet points detailing each error on your report. At the top left corner of your letter, provide your full name and address. Below that, write the address of the reporting agency. At the bottom of your letter, write a list of the documents you've enclosed.

What to Expect From the Agency

The credit reporting agency must contact you with a decision, usually within 30 days. If the reporting agency agrees that your information is inaccurate, it must notify all three major credit reporting agencies to have your information changed. For a fee, you may request that the agency sends a statement of the changes on your report to anyone who received your credit report in the last two years.

If the Agency Denies Your Request

You can request that the credit reporting agency includes your dispute letter in your credit report for future lenders or employers, but you may have to pay a fee for this service. If you need additional help in dealing with a credit reporting agency, call the Federal Trade Commission at 877-382-4357.

Prevention

To keep your credit report accurate in the future, take advantage of the one free annual credit report allotted to you by the FCRA. Simply go to annualcreditreport.com to request one free copy of your report every year from one of the three leading credit reporting agencies: Experian, Equifax or TransUnion. Review your report to make sure your information is up-to-date and your accounts haven't been subjected to identity theft.