How to Properly Dispute Incorrect Information on a Credit Report?

One of the most important things a consumer can do is to obtain a copy of their credit report on a regular basis. This will help to ensure that any inaccuracies are detected as soon as possible. It is recommended that this report be obtained at least once a year and that consumers check all the information that it contains carefully to be sure that everything is correct.

There are many details about a person’s financial and personal life which are contained in a credit report. Some of these details include such information as:

  • Address
  • Past filings of bankruptcy
  • Legal proceedings such as past arrests or lawsuits
  • Promptness in which bills are paid

The Federal Credit Reporting Agency or FCRA has laws that work to ensure that the information contained in a person’s credit report be kept accurate and confidential. This is why regular checking of the accuracy of this information by consumers is so vitally important. When discrepancies are found it is important that they be reported promptly so that any mistakes can be corrected as quickly as possible.

The information found within your credit report is how potential creditors determine your level of risk when you apply for loans or other services which require a good credit score. This information is also used to determine how much interest you will be charged for such services. The higher this score is the lower the level of risk. This in turn results in lower interest rates.

When checking your credit report it is important that you check each item. The point to this is to be sure that these are actions you actually made. This will help to prevent accounts opened without your authorization such as often occurs when identity theft is a concern.

In the event that you do find incorrect information in your credit report there are certain steps which must be taken. This will ensure that these items are corrected as quickly as possible. The first step is to provide as much proof as possible as to why you feel the information is inaccurate. This step must be done in writing and you should always include your full name and address and any documentation showing why you feel a mistake has been made. Remember when providing this documentation to always include copies and keep the originals for your own records.

The second step is to notify the creditor in question and provide them with the same documentation of proof which you provided the credit agencies. Once this information is provided to creditors they are obligated to investigate the matter and the item in question should not affect your credit score until this investigation is complete. If it is determined that a mistake has in fact been made the creditor is obligated to remove the information in question and provide correct information in its place.