Identity theft is just one reason that incorrect negative information can creep into credit reports. Other reasons can include names that are similar to one another or lender mistakes. Credit errors can cost you time, money and the ability to qualify for financial benefits.
The June 2004 study by the consumer advocacy group, U.S. Public Interest Research Group (U.S. PIRG), revealed that as many as 79% of credit reports have errors – 25% of which are serious enough to potentially result in a credit denial. More than half of the reports had information that was either outdated or belonged to someone else.
The most effective way to repair your credit is to dispute negative items that are inaccurate, misleading or unverifiable. Under the Fair Credit Reporting Act, you have the right to dispute any negative listing on your credit report. The credit bureaus are obligated to confirm that the listings are accurate and verifiable. Otherwise, they must be removed. Credit report repair is as legal as pleading “not guilty” in a court of law.
Steps to Repair Credit
The first step to disputing credit errors is to request copies of your credit reports from the three major credit bureaus. Each agency may list different information in your file, so it’s important to review all three.
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
(800) 685-1111
Experian
P.O. Box 2002
Allen, TX 75013
(888) EXPERIAN
(800) 916-8800
Trans Union
P.O. Box 1000
Chester, PA 19022
(888-397-3742)
Free Reports
Consumers across the nation are now able to request free annual credit reports from each of the three major consumer reporting agencies. To order your free annual credit reports, visit www.annualcreditreport.com.
Once you have identified what credit errors are present, notify each agency in writing. Include copies of supporting documents, as well as your complete name, address and a copy of your credit report with the items in question clearly marked. Keep copies of everything you send, and mail correspondence certified mail with return receipt requested. You may also need to contact your creditors individually so that they can check and correct their records as well.
The credit reporting agencies have thirty days to review and investigate your dispute. If the incorrect information cannot be verified, they must remove it from your credit report.
Challenging your credit report four or five times during the year could possibly achieve impressive and meaningful improvements on your total credit score.
Need Help?
In some cases removing negative listings can be a long and time-consuming process. For this reason, more and more people are choosing to use credit repair professionals like Lexington Law rather than disputing negative listings themselves. Credit repair is a legal way to clean up and improve your credit report. However, it is important to choose a firm that is both experienced and reliable.