Correcting a credit reportis a long process involving a string of correspondence with the credit agencies and the defaulting creditors. Corrections could range from rectifying spelling mistakes to getting wrong charges written off. The correction process is usually done in writing. With technological advancements, this can be done online or via the phone.
As per the FCRA (Fair Credit Reporting Act), both the reporting company and the information provider are accountable for providing the right information about you. In case of wrong information, they are required to make corrections as well.
Kinds of Mistakes: Correcting Credit Report
Broadly speaking, mistakes could be of three kinds:
- Spelling mistake or clerical error: A minor error in spelling your name or in the SSN numbers can change your identity. This can lead to failed credit, as the lending institutions will see an information mismatch. The best way to avoid such errors is by checking your details carefully and ensuring that your personal information is correct to the last detail.
- Wrong charges and credit transactions: Many a times, a creditor might put wrong charges on your account by mistake or due to identity theft. Be proactive and produce copies of the receipts along with the letter to the creditors as well as to the credit agencies.
- Missing or fraud accounts: Often, creditors do not provide complete account information to the credit agencies. This could result in you being turned down for credit on the basis of insufficient information on the credit files. Get in touch with the creditors to update the information.
Correcting a Credit Report: Steps
The approach for fixing the abovementioned errors is similar.
- Make copies of the credit report and circle or highlight the errors
- Enclose proofs of your claim
- Mention precisely the reason of the letter and use reference numbers as applicable
- Send copies of the letter to the creditors as well, to initiate the process from their end
The credit agencies usually respond within 30 days. Write back immediately once you get the reply stating your happiness or grievances, if any left. Be patient and follow these simple steps for an effective process of having your credit report corrected.