How to Challenge a Credit Report

You don't have any direct input on what goes into your credit report. The information is based on your financial choices and actions. The credit bureaus do not double-check it for accuracy, and up to 25 percent of reports have harmful errors, warns Bob Tedeschi of the "New York Times." The Federal Trade Commission notes that the Fair Credit Reporting Act gives you a chance to find and challenge inaccuracies through a dispute process.

Instructions

1

Order credit reports from Equifax, Experian and TransUnion through the online form or phone number on annualcreditreport.com. The FCRA forces the three bureaus to give you a free report annually if you get it through that official site.

2

Read through each individual report and note anything that needs to be challenged. Each report may each contain different information because the credit bureaus collect and compile their data independently. One may have a mistake even though the others report the same account information correctly.

3

Collect and copy any documents that back up your challenge for each mistake. You don't have to include proof with your dispute as long as you have valid grounds, but it strengthens your challenge. Appropriate documents include bank statements, credit card statements, loan documents and receipts.

4

Write out your challenges in a letter to each bureau. Enumerate every mistake and explain the correct information. Make a copy of your reports and attach them to the appropriate letters. Highlight and number each questionable item and cross reference them in your letters so the bureaus can easily understand your challenges. Ask the bureaus to complete their investigations, remove or fix challenged items and give you the results within 30 days. You are entitled to this by the FCRA.

5

Send your letters and documentation through certified mail, the FTC advises, and note the date each bureau receives its correspondence. Use the current mailing address on the TransUnion, Experian and Equifax websites. Write a reminder on your calendar to follow up with each one in 30 days if you do not get a response.

6

Compare current copies of your credit reports with each bureau's investigation results. They must give you new reports free when you make a challenge. Make sure the mistakes have been corrected or erased.