How to Get Wrong Info Off Your Credit Report

The Fair Credit Reporting Act--a federal law--requires credit bureaus to remove any inaccurate information at your request. By law, the bureaus have about 30 days to investigate your claim and remove the inaccurate information. The process for challenging inaccurate information on credit reports is simple, and the Federal Trade Commission strongly encourages you to do it yourself and stay away from so-called credit repair agencies. The agencies are unable to perform any services regarding your credit reports that you cannot do yourself.

Instructions

1

Get a copy of your credit report from Annual Credit Report (see Resources), the only website authorized by the Federal Trade Commission to provide you with free credit reports as required by federal law. You are entitled to three reports every 12 months, including one each from the nationwide credit bureaus--TransUnion, Equifax and Experian. By ordering one report every four months you can monitor your reports year-round for free.

2

Find the incorrect information on your credit report. The account may not belong to you or it may be reporting as past due although you have always paid on time.

3

Write a letter to the credit bureau stating that the information is wrong, and list the reasons why. Include your name, address and telephone number. Mail the letter to the address on the credit report. The credit bureau will respond by mail within about 30 days. Or go on to the next step for another option.

4

Challenge the inaccurate information online by visiting the website for the credit bureau (see Resources). To enter your dispute online you will need a report number or reference number from the credit report you obtained from Annual Credit Report. A response will be emailed to you within about 30 days.

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Is There Any Way of Getting a Truly Free FICO Score?

The Fair Credit Reporting Act demands that credit rating agencies give you one free credit report each year, but this does not entitle you to see the FICO score that lenders use when making credit decisions. You can get a free FICO score, but you likely have to risk giving up your credit card information.

Trial Offers

The major credit bureaus offer a credit report that includes your FICO when you sign up for a credit report monitoring trial service. To make sure this is free, you must cancel the service before the trial period ends. Otherwise, you will incur the subscription charge, which can cost more than paying for your FICO score directly.

Tip

Some banks allow their account holders to see their FICO score for free, according to Fox Business. These banks, however, choose to remain anonymous except for a few, such as Pennsylvania State Employees Credit Union and Digital Federal Credit Union. Lenders, such as those that deal in auto loans and mortgages, may let you see your credit score during the application process.

Warning

If you get an offer for a free credit score, make sure it is a FICO score. The national credit bureaus have proprietary scores, such as the VantageScore, but these are rarely used by lenders. It gets even more confusing. Only Equifax sells the FICO score developed by the Fair Isaac Corporation. Experian and Equifax sell credit scores based on the FICO model, according to The Motley Fool.

Alternative to Trial Offers

Lenders care less about your credit score than the information in your credit report. You can use a free FICO score estimator to get an idea of how risky you are to lenders. In 2011, federal law may allow consumers to see their credit score for free if they receive a less-than-prime rate.

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How to Find Out If Someone Has Stolen Your Identity

Criminals use people's names, Social Security numbers or credit card numbers to rack up debt and commit fraud. According to the Federal Trade Commission (FTC), as of 2005, 8.3 million Americans were the victim of identity theft. Most people don't find out until they start noticing subtle red flags, such as strange credit card statements or mail that isn't coming to their home any longer.

Instructions

1

Order a credit report. According to the FTC, one of the top signs of identity theft is unexplained accounts. Consumers are entitled to a free credit report every 12 months from all three credit bureaus (TransUnion, Experian and Equifax). Order credit reports online (see Resource list) and highlight accounts that you don't recognize.

2

Review personal information on credit reports. After reviewing all accounts on your credit reports, look for other signs of identity theft. According to the FTC, inaccurate personal information, such as addresses and employers, could be a red flag.

3

Pay attention to missing mail. If you stop receiving credit card statements, it might not be a glitch. Follow up with creditors right away. Discuss recent activity on your account. Oftentimes, identity thieves will change mailing addresses to cover their tracks. Also, watch out for credit cards that you didn't request.

4

Call collectors back. If debt collectors start calling your house, don't assume it's a misunderstanding. According to the FTC, identity thieves will open accounts, charge them to the maximum and leave you in debt.

5

Ask questions if you're denied credit. Many people suspect identity theft when applying for new credit. For example, a consumer may believe he has stellar credit. However, the lender may offer him an unfavorable interest rate. In these cases, it's important to investigate the possibility of identity theft.

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How to Dispute Items on Your Credit Report Online

As a consumer, you have a right to dispute items that are on your credit report. You can dispute the reported items for a variety of reasons, such as outdated information, wrong debt amount listed, or if you are the victim of identity theft. To dispute items, first obtain a copy of your credit report from all three of major credit reporting bureaus, Equifax, TransUnion, and Experian. You are allowed one free copy of your report from each bureau per year. Once you have a copy of your report you are armed with the information you need in order to file a detailed dispute.

Instructions

Equifax

1

Order a copy of your credit report from Equifax. You can order the report online via the Equifax website (link in Resources) or by calling 877-322--8228.

2

Visit the homepage of the Equifax website. Locate the "Other Credit Services" section and its three categories: "Credit Reports," "Correct Errors" and "Fraud Alerts & Freeze."

3

Click on the "Start a New Dispute" link under the "Correct Errors" category.

4

Complete and submit the online dispute form by providing information such as your name, social security number, the name of the credit item that is being disputed, the account number, and the reason for the dispute. You will be provided with a confirmation number once you submit your online dispute.

5

Wait 30 days to give Equifax enough time to complete an investigation of your dispute.

6

Visit the Equifax website again. Scroll down to the "Other Credit Services" section that is near the bottom left hand side of the page. Click on the "View Results of An Online Dispute" link under the "Correct Errors" category.

7

Complete the form by entering the confirmation number provided in Step 4. You must also enter your name, social security number, and contact information. Click "Submit" to view the updates regarding your dispute.

TransUnion

8

Order a copy of your credit report from TransUnion. You can order the report online via the TransUnion website (link in Resources) or by calling 800-888-4213.

9

Visit the homepage of the TransUnion website. Click the "Dispute an Item" link that is located in the "Consumer Assistance" section. Click the link labeled "Submit a Dispute." Select the "Online" option. Click the button labeled "First Time? Click Here."

10

Complete and submit the online dispute form by entering your name, social security number, contact information, the name of the credit item that is being disputed, the account number, and the reason for the dispute. You will also be able to create a username and password for your online account.

11

Wait 30 days. Visit the TransUnion website again. Click the "Dispute an Item" link, located in the "Consumer Assistance" section.

12

Click the "Submit a Dispute" link. Select the "Online" option. Click the button labeled "Returning? Click Here." Enter your username and password to access the results of your online dispute.

Experian

13

Order a copy of your credit report from Experian. You can order the report online via the Experian website (link in Resources) or by calling 888-397-3742.

14

Visit the homepage of the Experian website. Click on the "Additional Services & Products" tab. You will see three categories underneath this tab, "Products," "Credit Report Assistance," and "Notices."

15

Click on the "Disputes" link that is in the "Credit Report Assistance" category. Click the button labeled, "Yes, I Have A Credit Report Number."

16

Enter your credit report number and social security number and click "Submit." Complete and submit the online dispute form by providing information the name of the credit item that is being disputed, the account number, and the reason for the dispute.

17

Wait 30 days. Visit the Experian website again. Click on the "Disputes" link that is in the "Credit Report Assistance" category near the bottom of the page. Click the link labeled, "View Credit Report Dispute Results." You can then enter your credit report number and social security number to view your dispute results.

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Does Cancelling My Credit Cards Increase My Credit Score?

There were 173 million credit-card holders in America in 2006, according to the U.S. Census Bureau, projected to grow to 181 million Americans by the end of 2010.

It Negatively Affects Your Credit Score

Never close a credit card for the sole purpose of raising a credit score, advises myFICO. The Fair Isaac Corporation calculates FICO scores by examining individuals' total used credit in relation to their total available credit. Closing a credit card account decreases your available credit, which can negatively affect your score.

It Can Be a Good Thing

From a credit management perspective, closing old or unused credit card accounts can prevent using them and falling further into debt. Closing one or two of several accounts doesn't hurt. Creditors may decide consumers with more than the national average of 3.5 credit cards are overextended, according to CreditCards.com.

Bottom Line

It's always a good idea to keep as many accounts with low balances open as possible, which gives your credit score a nudge upward. However, if you have many credit cards listed on your credit report, closing a few accounts probably won't hurt your score.

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Will it Affect My Credit Score If I Cancel My Credit Card With a Balance?

According to Fair Isaac, most American consumers have 13 credit accounts reported to credit bureaus. These include both credit cards and installment loans. For those consumers who are trying to curb spending by using credit cards less, canceling a credit card might not be the wisest choice. You should first consider how canceling a credit card could damage your credit score.

Increased Interest Rate

If you are thinking about canceling a credit card, keep the account open until you pay off the balance in full. Letting a card issuer know that you intend to cancel the account is the wrong thing to do. Card issuers often raise the interest rate to the maximum amount allowable when you cancel a card that still has a balance. You don't want a higher interest rate lowering your credit score, thereby increasing the interest rates you pay on your other credit accounts.

Decreased Line of Credit

Canceling a credit card decreases the amount of your available credit. Having a lower line of credit could negatively impact your credit score. When you close a credit card account, the outstanding balances on your other cards loom larger because you've reduced the total amount of credit accessible to you. Closing an account usually is not a sensible move, especially if the card still has a large amount of unused credit. On the other hand, paying down credit card balances improves your credit score. Reducing the amount of debt you owe appears much more favorably on your credit report than decreasing your line of available credit.

Length of Credit History

A long credit history increases your credit score, especially when you have a positive payment history. Bankrate.com recommends keeping your oldest credit card account open. Canceling an old card shortens your credit history, which can lower your credit score. Even though creditors normally do not remove a cancelled account from your credit report immediately, in time the account will no longer show on your report. If you want to reduce the number of credit cards you carry, cancel an unused credit account that has a zero balance. This won't hurt your credit score.

Applying For a Loan

If you are thinking about applying for an auto or mortgage loan in the near future, this might not be the time to close any credit card account. Consumers with healthy credit don't have to worry as much. But if your credit is marginal, a drop in your credit score of just a few points could disqualify you for a loan. Even if you are approved for a loan, a lower credit score will cost you more money because you will be paying a higher interest rate.

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How Long Does an Unpaid Bill Stay on a Credit Report?

The Credit Score

Your credit report is a document containing information about all of your debt- related activities. Items such as savings accounts, loans, credit cards and outstanding debts are all found on your credit report. The good information is weighed against the bad information to determine your credit score. If you have a high credit score (above 660), you are likely to get approved for more lines of credit. If you have a low credit score (below 620), getting approved for credit is unlikely.

Unpaid Bill

Paying bills on time is integral to maintaining a high credit score. If you miss a payment or make a late payment within 30 days of the original payment due date, that goes on your credit report and stays there for seven years. Once you become 90 days late on paying a bill, your account is closed and sent to a debt collector, which also stays on your credit report for seven years. While making a late payment is bad, simply ignoring an account and letting it go unpaid for extended periods of time is much worse.

Charge Off

After a collection agency is in possession of your account for an extended period of time (usually well over a year), the agency might contact you and offer you what is referred to as a "charge off." This allows you to pay less than the amount of money you owe to completely settle the debt. It sounds great, but it comes at a price. A "charge off" severely affects your credit score and is a red flag for future potential lenders. It lets them know that not only did you let a bill go unpaid for a long period, you didn't pay the entire amount of the bill.

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