Paper Money

How to Fix Your Credit Report (and Identity Theft)

Why Check Your Credit Report

I recently presented information detailing how to get your free credit report from annualcreditreport.com.  I thought I’d follow up that post with one on what to do when you have incorrect information on your reports.  After all, the reason you need to check your reports periodically is because there may be something wrong on them.  This incorrect information could indicate fraud, and/or could lead to you not getting a loan (or at least the best loan you can).

Someone I know was recently denied a loan because of some negative history on his credit report.  It turns out that when he reviewed his report, his Dad had used his SSN to apply for some credit cards a long time ago and then defaulted.  This is essentially identity fraud against your family.  Very sad.  My point in sharing this is to stress the importance of reviewing your credit report periodically, as you never no who is going use it and screw it up.

If you have a simple error on your report here’s how to go about getting it corrected:

Tell the reporting agency (TransUnion, Experian, or Equifax), in writing, what information you think is correct.  Send them copies of evidence of your claim.  Keep copies of everything you send and send it certified mail, return receipt requested.  Unless they think it’s bogus, they must send to the creditor or information provider to investigate your claim (takes about 30 days).  If they agree they will inform the other two agencies.  Once they correct the mistake, you can have them send corrected copies to everyone who got one in the past six month.

Next, you need to tell the creditor or information provider.  I guess this step is in there to ensure that the information provider sees your complaint, as the reporting agency could have considered it frivolous and tossed it.  Same rules apply on copies and mailing method.

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