How to Correct Errors on Your Credit Report

We all know there is already an extensive list of factors we have to look out for when it comes to improving, protecting, and maintaining our credit. So it makes it that much more frustrating to see multiple errors and omissions appearing on our credit reports. By educated ourselves, we can find out how to correct these errors and return our credit scores to where they originally were. If you find errors on your credit report you can take the following four steps to correct them:

1. Check your credit by obtaining a copy of your credit report every year.

It is important to check your credit report thoroughly for possible omissions, errors, or signs of identity theft. So take a moment, at least once a year, to request a free copy of your credit report. The best method to do this is to visit the official Congressional site where you can either request your free report online or submit a request form via mail. This site is the only official site where you can obtain your annual credit report for free, no strings attached. The recently passed Congressional law allows you to request your free credit report once for every 12 month period.

You can also request your credit report through other means. There are other websites and the individual bureaus provide this service as well. However, beware that these other websites including the three bureaus charge you for your credit report, either directly or indirectly. You may be charged up to $10 for each individual bureau report. Or if you register to receive a "free" credit report you may find that you will be spammed with advertisements and/or additional credit services.

2. Identify any errors or omissions showing on your credit report.

Set some time aside to thoroughly read your credit report. Keep your eyes open for any: 1) Mistakes on your report including erroneous late payments, incorrect collections. 2) Omissions on your report including a history of credit cards and prompt mortgage payments. 3) Signs of identity theft including unfamiliar credit cards and higher balances than normal. Remember, you can always check for signs of identity theft when you receive your monthly bills. Analyze each charge to make sure you recognize them all.

3. Obtain evidence of the error from the original creditor

When you find errors on your credit report, identify the creditor in order to obtain proof of the mistake. The best supporting evidence to obtain from the creditor is a company letter documenting the following: 1) Name on account, 2) Account number, 3) Current date, and 4) Current balance. Make sure to request the letter on the company's official letterhead. Depending on the company, receiving the letter can take anywhere from a couple days to 2-3 weeks. If you are in a rush, request the letter to be faxed before being mailed to you. However, be aware that many creditors do not allow letters to be faxed so be prepared to wait to receive the necessary documents. The wait period could take anywhere from a few days to a few weeks.

4. Report the evidence to the credit reporting company or companies in writing.

Contact the credit bureau reflecting the error(s) in writing. Attach copies of the documents you requests and received from the creditors. Make sure to include the following information when you write in: 1) Complete name, 2) Mailing address, 3) Which accounts you are disputing, 4) Facts of dispute, and 5) Explanation of dispute. Remember to send the letter and additional documents by certified mail.

Once you send in your letter and supporting documents, credit bureaus are required by law to investigate the accounts being disputed within 30 days. During the investigation process the credit bureau will contact each credito under dispute, upon which the creditor will look into their own records and report back to the credit bureau with their results. Once the investigation is complete, the credit bureau must send you the final information in writing along with another free copy of your credit report, assuming your report has changed due to the dispute.

Do not forget to check for omissions as well. You can follow the same procedure to add missing accounts to your credit report. Even though most errors and omissions cannot be prevented, you can definitely help avoid identity theft from occuring by doing the following :

Shred all documents with personal information including social security numbers, account numbers, etc.

Do not carry extra, unnecessary credit cards and identity documents.

Do not print social security numbers on documents that are to be given to others including personal checks.

Never give your credit card, social security number, or other personal information (including birthday, mother's maiden name) over the phone unless you initiated the call.

Ultimately identity theft is not your fault but if you would like to read more suggested methods to avoid identity theft, read our article: "Top Suggestions to Avoid Identity Theft." With successful dispute investigation and the prevention of identity theft, you are well on the way to building and maintaining your credit report and credit score. Congratulations!