Fixing a Credit Report Mistake

Most people don't think about fixing a credit report mistake until it prevents them from getting credit, insurance, or maybe even a job.

If you've been turned down because of information in your credit report, the company that you applied to must give you the credit bureau's name, address, and telephone number that they received the information from. If you contact the credit bureau within 60 days of receiving a denial notice, they will send your credit report to you for free.

When you get your credit report, very carefully check over all the information. First, make sure that all the information really belong to you. Sometimes information that belongs to someone with the same name as yours get recorded on your credit file. Also check the address information to make sure that it is correct.

Also, check the account information section to make sure that all the accounts really belong to you. If you find accounts that you didn't open, you may have become a victim of identity theft and need to investigate the matter. Another thing to check for is accounts that you know were paid off, but are still showing a balance on your credit report. You have the right to contest any incorrect reporting of credit information.

It's important to note that if the information on your credit report is accurate, the credit bureaus are not required to remove it before the seven year reporting period is up. There are certain exceptions (according to the FTC):

  1. Information about criminal convictions may be reported without any time limitation
  2. Bankruptcy information may be reported for 10 years
  3. Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit
  4. Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit
  5. Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer
  6. Criminal convictions can be reported without any time limit

Fixing A Credit Report Mistake

The first step to take in fixing a credit report mistake is to contact the credit bureau that furnished the information. Send a written letter to the credit bureau asking them to investigate the disputed items. Enclose copies of any supporting documents that support your claims. If, during the credit bureau's investigation, they cannot verify the disputed information, then it must be removed from your credit file. Below is a sample dispute letter from the FTC website that you can use when disputing credit bureau reports:


Sample Dispute Letter

Date

Your Name
Your Address
Your City, State, Zip Code

Complaint Department
Name of Credit Reporting Agency
Address
City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my file. The items I dispute are also encircled on the attached copy of the report I received. (Identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.)

This item is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely, Your name

Enclosures: (List what you are enclosing)


The credit bureau must investigate the disputed information (usually within 30 days), unless they consider your request frivolous. The credit bureau must also forward all relevant information that you provided about the dispute to the company that supplied the information to the credit bureau in the first place. The original company must then investigate the dispute and report their results back to the credit bureau. If the original company finds that the disputed information is incorrect, they must notify all three credit bureaus to update the information in your file.

Once the investigation is complete, the credit bureau must give you the results in writing and a free copy of your report if the disputed items are corrected. Upon your request, the credit bureau must also send correction notices to anyone who received your credit report in the past six months (this extends to two years for anyone who requested your file for employment purposes).

Sometimes, your efforts in fixing a credit report mistake doesn't resolve your dispute. You can then request that the credit bureaus include a summary of any items that you still dispute and an explanation of the reasons why in your credit file.

For more information about credit reports, check out the following articles: