Consumer reporting agencies, better known as credit bureaus, collect financial information from you from institutions with which you have a relationship. This information is compiled into a credit report. If you’ve had a credit card, loan, or a collection account, chances are you have a credit report.
Creditors and lenders to whom you make an application for credit use your credit report to determine how you pay your bills. They then use this information to determine whether or not to extend credit to you. If the information contained in your credit report is incomplete or inaccurate, you could be turned down for credit.
In the case that your credit report indeed has information that is not correct, you are allowed to dispute this information. The Fair Credit Reporting Act provides you with the advantage of having the information provider confirm or update information that you deem as being incorrect.
When you find inaccurate information on your credit report, the first thing you should do is contact the credit bureau that the report came from. Write a letter to the bureau stating the information that you think is not correct. Provide copies of any documentation you have to support your claim and request that the information be removed. It is a good practice to include a copy of the credit report indicating the items that are questionable.
After receiving your letter, the credit bureau will investigate your claim, forwarding any information you provide about the claim to the creditor or lender who provided the information. The creditor then has 30 days to provide proof supporting the information on your credit report. If the creditor determines that the information disputed is indeed incorrect, it is required update the account with all three credit bureaus.
Once the investigation has been completed, the credit bureau must let you know the results. If there were any changes to your credit report as a result of the dispute, you must be provided with a free copy of your updated report. You can also request that the credit bureau send a notice of the changes to any party that has received your credit report in the last six months.
It is best to send disputes via certified postal mail so you have verification that the dispute was sent.
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