After taking the first step of obtaining a free credit score report, the next most common step to improving your credit score is to correct any errors that might be present. Strangely enough, errors do occur, and it is well worth taking the time to dispel such inconsistencies. You must carefully scrutinize the report in order to correct things like account numbers, names, wrong information, as well as items that are out of date. The last error type is the most common mistake and when corrected can have an important impact on your score.
There are guidelines that regulate how long certain kind of information can be recorded in your credit score. For example, most undesirable information that is over seven years old may be removed. This includes lawsuits, judgments, paid tax liens, accounts dispatched for collection, records of criminal activity (other than convictions), late payments, and even child support and many other pieces of possibly adverse information. This is great news for those that have blemishes on their credit report from years ago. These things will not show up forever. Even insolvencies that are older than ten years can be dismissed from your score. Getting rid of this outdated undesirable information can have an immediate impact on your score, especially depending on the severity of the problem.
It may seem silly, but it is just as important to check things like your Social Security number, name, address, phone number, and information concerning your occupation. These mistakes might be outdated or simply entered incorrectly. These errors actually do occur. In the same way, errors also occur concerning your involvement with certain accounts. It is possible that suits or credit accounts that do not belong to you show up on your credit report. This is also true of accounts that have been paid in full. Sometimes these accounts may not have been updated and still show an outstanding balance.
By filling out a request for reinvestigation form or writing a letter, you can correct these errors that are detrimental to your overall credit score. You should, as carefully as possible, reference every inaccurate or outdated piece of data that appears on your report as well as describe why that information is incorrect. The reporting agency will then investigate those items and contact you within 30 days to notify you of any changes. This process may also be expedited if you are trying to qualify for a mortgage or car loan. This is known as a rapid rescore.
Once you have rid your free credit score report of any incorrect information, you can then begin to add positive information. This might be through a new loan, a secured credit card or simply making responsible payments on the accounts you already have. By double-checking your credit report for errors you might save yourself a great deal of time in the task of recreating your credit merit.
Something all consumers should be doing at least once a year is keeping tabs on their credit history. How ever most of us don't do it unless we run into a problem. If you don't already have current copies visit AnnualCreditReport . com and request your credit report from all three credit reporting agencies.
#2 Draft a dispute letter and send it to the Credit Bureaus
If and when you find mistakes on your credit report be sure to contact the credit reporting companies right away. This is an important step, dispute credit report errors ASAP, waiting could make it more difficult to remove, and/or cause harm if you require credit at some point.
#3 Hold onto copies of all documents
When writing to dispute credit report errors never send in your original credit report, or creditor statements you're using as support. It's important that you keep a good file on your credit repair process, and have all items if requested in the future. Another piece of advice for protection is to always send items via registered mail. This will ensure the letter gets to them, and there is a tracking number for your own records.
#4 Contact Creditors if it's worth while
Depending on the item that is an error, along with your credit report dispute consider contacting the creditor correctly. A lot of information is handled via automated systems these days, and computers can make mistakes, or an employee could accidentally miss someones SSN by one digit. Creditors should contact the credit bureau to resolve issues as well, and ensure that the credit report error is deleted.
#5 Know what happens behind the scenes of a Credit Report Dispute
After a credit bureau receives your dispute credit report error, they have approximately 30 days to investigate. The credit bureaus will attempt to prove the item to be not an error, if this cannot be done then the item should be deleted. Understanding how the credit report dispute process works will help with patience while you wait, and support arguments if need be.
#6 Contact a Lawyer if you need more help
This is for more serious credit repair, and dispute cases, but there are credit repair lawyers that can help you draft credit dispute letters and help handle your case. If you feel uncomfortable handling the process yourself, or wold like someone to discuss your options with, consider seeking out a lawyer you specializes in credit report disputes.
These six steps give you a basic primer to what it takes to repair a credit report error, and what you should do and/or be careful of during the process. Remember credit reporting agencies are for profit companies, so don't expect them to want to help you out, stand your ground and provide supporting information and you'll see things happen.
If you are nervous or feel uneasy about handling your credit report information alone, there are non profit companies in most areas, as well as paid professionals that can help you understand the information on your credit report and help make decisions about what errors you could/should dispute.
Both Mike Clover & D Fraser are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Mike Clover has sinced written about articles on various topics from Free Credit Report Score, Marketing Campaign and Free Credit Report Score. It is very important to know what is on your Credit Report, because there could be errors on it. In order to know, you must pull a current copy of your Credit Report. Go to