How to Fix Credit Errors?
Your credit report can sometimes contain inaccuracies. “To err is human”, said a wise man. Statistics are here to support the saying—around 80% of all reports contain errors. There are two kinds of blunders you can run across:
1. Information that is not yours
Again, this can happen due to a human error. Someone must have clicked a wrong button and had the missed $2,000 installment reported on your name instead of the neighbor’s. When trying to fix credit errors, these are the easiest to deal with.
2. Transactions not up to date
A common mistake on credit records is related to bills that are reported as unpaid but have been taken care of in the mean time. Most often, the creditor forgot to inform the credit bureaus about the settlement of the dues.
Here is a breakdown of what you are supposed to do when you notice mistakes on your credit file.
Gather your documents
If your credit record says you haven’t paid your gas bill on February 2008 and you are positive you have, then you have to come up with the receipt. Putting your documents in order is the first step you have to take to fix credit errors.
Inform the credit reporting agencies
Contact Equifax, TransUnion and Experian and inform them that you are about to dispute one or more items on your credit record. Under the Fair Act, they have to investigate the issue themselves and send you a reply within 30 days.
Contact your alleged creditors
Address another letter to your creditors and other third parties involved—like collection agencies—and let them know which transactions you believe to be inaccurate. Include as much information as you can, together with supporting documents. Keep a record of any phone conversations and send all letters with return receipt. Upon a mutual resolution, the creditor has to address the credit reporting agencies and ask them to fix credit records on your behalf.
As a final note, remember that you should never debate genuine transactions. You would be committing a felony that can get you behind bars, not to mention it won’t help you fix credit records. Debate what is inaccurate and shouldn’t have been there in the first place.