How to Challenge Items in Your Credit Report

Seventy-nine percent of consumer credit reports contain at least one error, according a 2004 report by the U.S. Public Interest Research Group (PIRG). Twenty-five percent of reports contain a serious error that could result in a person being turned down for a loan or line of credit. Since 1991, PIRG has researched credit report inaccuracies seven times, and each time, serious problems were found with the way credit accounts are reported. Your best defense against mistakes and inaccuracies is to obtain a copy of your credit report and challenge the inaccurate items.

Instructions

1

Obtain a copy of your credit report from all three major credit bureaus: Equifax, Experian and Transunion. Start by visiting the Annual Credit Report site listed in the "Resource" section. Identify the inaccurate items and write down the creditor, the claimed balance, the date and the credit bureau(s) that generated the report on which the item appears.

2

Gather documents to support your case, if possible. If the item is an unpaid balance or inaccurate late payment claim, find your receipt or bank record showing the payment and the date. Make copies of your supporting documents.

3

Write a letter to the credit bureau(s). For each item, you'll need to write a separate letter. Use the sample letter provided in the "Resource" section, but remember to transfer your information to it.

4

Wait 30 days for a response. By law, the credit bureaus must investigate your claim within 30 days and notify you of their decision in writing. If the creditor cannot disprove your claim, the item(s) will be removed from your credit report.

5

Follow up with another letter or a phone call to the credit bureau(s), if you have not heard back within 30 days. You can challenge an item as many times as you want--there is no limit.