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Cleaning Up Mistakes on Your Credit Report

By Melissa Bender, Esq. on February 27, 2013 | Last updated on October 20, 2024

Your credit report is an incredibly important document. Someone with good credit is more likely to obtain loans and credit cards with better interest rates from lenders. Unfortunately, sometimes credit report errors happen and there are inaccuracies and negative information that need to be corrected.

Some of the incorrect information might be due to human error or carelessness when entering data on your payment history. But problems can also crop up on your credit report if you're the victim of identity theft or a scam. All of those fake purchases can really hurt your credit score.

You have the right to dispute errors in your credit report and remove fraudulent information. But to do it takes some work.

Reviewing Your Credit Report

The first thing to know is that you can request a copy of your credit report once a year for free from any of the major credit bureaus (Equifax, Experian, and Transunion) using annualcreditreport.com. That's different from your FICO credit score which is a number which predicts your credit health. Your credit report includes personal finance history such as past jobs and homes, loans and other debts, and your credit card and bank credit history. The Consumer Financial Protection Bureau (CFPB) can provide tips for obtaining and understanding the information on your report.

You're also entitled to a free credit report after a company takes "adverse action" against you. That means denying you credit, insurance, or employment because of your credit profile. That applies even if you've already gotten your yearly free report.

If you've been the victim of identity theft, it's likely that you racked up some debt that wasn't really yours. Once you settle it with your banks and credit card companies, you have to tackle your credit report.

Disputing Items on Your Credit Report

The first step is to let the credit reporting company know that the report is wrong and the specific inaccurate information that you are questioning. Each company has its own dispute process that you will need to follow to request that the negative items be removed. The credit reporting agencies are required by the Fair Credit Reporting Act to investigate any claims of false or disputed information.

It's best to write a dispute letter to the credit agencies so that you have proof that you notified them. You can also then include any supporting documents that help prove your claim. That might include communications with your bank or credit card about the fraud, proof of canceled charges, and other evidence of identity theft.

But if the credit reporting company refuses to respond or remove the disputed item? At that point, you should consider getting an attorney to fight your battles. It's not about whether you can or can't handle the process. The company is just more likely to respond quickly to a lawyer's requests rather than to yours.

No matter how you do it, it's important to keep on top of the issue because if it looks like you have bad credit you may be denied the credit you need. Mistakes on your credit report can be a big problem but once you complete the credit repair process you will move forward with a positive credit file.

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