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The Fastest Way to Clean Up Errors On Your Credit Report

June 9th, 2016

Hand putting check markSorry to be the bearer of bad news, but there is no fast way other then to regularly check your report and dispute anything that looks wrong, and then follow up to be sure it was changed. Last week, we talked about how to obtain your credit report and credit score.

Did you know that 25-30% of credit reports have errors? You should check your report regularly to quickly get these errors fixed. Also, it’s also essential to ensure that no one else is using your information to open up credit, and potentially ruining it.

How do you look for errors?

Check your personal information including name, address, phone number, birth date, and Social Security number to make sure everything is accurate. Information regarding lawsuits, judgments, liens, late child support, or other late payments should be stricken from your credit report after 7 years and bankruptcies after 10 years. Credit inquiries from companies to determine eligibility for credit must be removed after 2 years.

Second, mark anything that looks off including credit card accounts that you closed but still appear as open on the report; accounts that you never opened; activity that you were not involved in; and account histories that show late payments when you know you paid on time. You will want to dispute everything you can.

You’ve found errors. Now what do you do?

The FTC has a full page on how to dispute including a sample dispute letter. In a nutshell, you need to write out a description of the errors and inaccuracies in detail. Explain why it’s an error, and include a copy of the report where you’ve circled the issue. More detail is better. If you have supporting documentation, include a copy of that as well.

Then send the letter certified mail with return receipt. You want proof that you sent it in case there’s a claim you never notified them. By law, the credit bureau must investigate and contact you within 30 days of receipt.

In the past, there were ways to dispute online, but this wasn’t as good because it wasn’t possible to add in the supporting documentation. Also, it wouldn’t necessarily clean up the report. The agencies would reduce your issue to a two-digit code and provide only that code on to the requester and not what the dispute was about or who was correct.

The good news is as of 2014, you can upload supporting documentation such as a canceled check, a note marked "paid" when submitting your dispute online, and the credit reporting agency must provide all relevant information, including the dispute itself and supporting documents, to the furnisher.

You can mail in your dispute if you prefer the paper trail.

Also, if there are errors for a specific account, send a copy of the dispute to that account also via certified mail with return receipt. Give the company a chance to fix it on their own.

If the disputed information is found to be in error, then it must be removed from your report. You have the right to ask that a corrected version of the credit report be sent to any company that has requested your credit report in the past 6 months. The credit bureau must also send you a free copy of the corrected version.

Additionally, under the Fair Credit Reporting Act, if the information found to be in error on your credit report is not removed and the court finds the violation intentional, you are entitled to actual and punitive damages, as well as court costs and attorney’s fees.

A woman in Oregon sued Equifax and won $18.6 million in punitive damages. She had contacted Equifax eight times between 2009 and 2011 to fix some major mistakes including her social security number and birth date.Credit Report with Score

Remember, check your credit report and score before:

  • You are looking to buy a home
  • You want to refinance
  • You are looking to rent an apartment
  • If you have gone into foreclosure or bankruptcy
  • You are planning on leaving your job to become an entrepreneur
  • You are applying for a new job
  • If you’ve been late on a payment
  • You want to help a loved one
  • If you’re getting into a serious relationship

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