Your Financial Success Blog

A recent study by Consumer Reports found that nearly 3 out of every 10 Americans have an error in their credit report. That’s more than 100 million people living with an error that could damage their credit rating. Those inaccuracies could result in a denial of credit, lead to higher rates on loans, an increase in insurance premiums, and employment issues. As we enter school season and inch closer to the holidays, we’ve put together four steps to help you correct any errors in your report and potentially improve your score.

1. Get Your Credit Reports
   Every year, you are entitled to a free copy of your credit report from each of the reporting agencies. These agencies include Equifax, Experian, and TransUnion. Download your copies at annualcreditreport.com.
   
   To start, simply obtain a copy from one of the reporting agencies. Then, four months from now and four months after that, get a copy from the next reporting agency. This will ensure you catch mistakes on an ongoing basis.

2. Look for Errors, Omissions, Inaccuracies, and Fraud
   Comb through the report looking for:
   • Accounts with late payments that you are certain were paid on time.
   • Incorrect account status that shows an account as either delinquent or in default.
   • Wrong account balances and credit limits.
   • Accounts that you did not open. This could be fraud.
   • Closed accounts that appear to be open.
   • Any incorrect dates, such as when the account was closed or the age of the account.
   • Duplicate accounts.
   • Errors about bankruptcies, tax liens, judgments, or other legal issues.

3. Gather Supporting Documentation
   Here are some of the documents you may need to prove the errors or fraud:
   • Letters or emails from creditors that prove an account is closed or that there is inaccurate information.
   • Identity theft reports.
   • Court documents.
   • Account statements showing payment history or account balances.

4. Dispute the Error(s)
   First, you must report the error to the corresponding reporting agency. If you find a mistake in your report from Equifax, only report it to Equifax. The same goes for each of the other reporting agencies, including Experian and TransUnion. Visit each credit reporting agency’s dispute center to start the process.

Equifax Dispute Center
Experian Dispute Center
TransUnion Dispute Center  

An Investigation will Begin
The credit reporting agency has 30-45 days to investigate the error and send follow-up questions. If they find your dispute credible, they will fix the error and notify you in writing. If the dispute is not accepted and they believe the information in your report is accurate, they will notify you and provide an explanation.