How to Dispute your Credit Report

A credit report shows a lot of important details and information about an individual. The report shows where the person lives, how he has been paying his bills, whether he has filed for bankruptcy, been sued or arrested any time in his life. The credit report is scrutinized to help in making decisions for credit-based applications like insurance and loans; it is also used for purposes of employment or when renting a home. This is the reason why every person needs to meticulously review his credit reports, making sure that all the information posted is accurate. After all, it can spell the difference between getting a much-needed service and being denied its availability.

According to the Fair Credit Reporting Act (FCRA), an individual has the right to dispute or question any credit report information that he believes is incorrect. The first thing a person should do then is to make sure he gets a copy of his credit report. All of the credit bureaus are bound by federal law to provide one free copy to each individual every year. These credit reports can be accessed by going online and checking out each credit bureau’s website, through calling the designated number, or by printing a request form and then mailing it to the specified address.

If an incorrect entry is found in the credit report, the individual should immediately notify (in writing) the credit bureau who supplied the report as well as the information provider. This is the start of the credit report dispute process. In the statement, the person should include his name, complete address, the information or entry he is disputing, and the reason why that information is believed to be incorrect. It is best to attach a copy of the credit report with the inaccurate information highlighted. If it is possible, the person should also include copies (not originals) of cancelled checks or statements that may help him support his claim. Afterwards, the credit report dispute should be sent via certified mail, with a request for a return receipt. This will not only ensure that the individual has evidence that he sent the dispute, but that the dispute was received by the credit bureau as well.

From their end, the credit bureau has 30 days to do their investigation regarding the dispute, and to respond in writing with the results of their investigation. All the information that was provided by the individual will then be sent to the original provider of information. The information provider is in turn obligated to do their own investigation and report back to the credit bureau. Once the investigation has been completed, the credit bureau will give the results to the person concerned, along with a free copy of the credit report if changes were made as a result of the dispute. A person can also request for the credit bureau to send correction notifications to each company that accessed his credit report in the last 6 months.

It should be noted that if the information on a credit report is incorrect with one credit bureau, there is a big possibility that the same holds for the other credit bureaus. It is then important to check that all information is correct and complete for all three bureaus. As each company meticulously scrutinizes a person’s credit report, that individual should be as meticulous in making sure his credit report only contains accurate information. His way of living may depend on the simple task of checking all details and, if needed, making a credit report dispute.