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    Categories: Credit

What Can You Do if You Have Problem Fixing Your Credit Report?

What Can You Do if You Have Problem Fixing Your Credit Report?

Have you ever had a problem in fixing your Credit Report ?The endless phone calls, letters and hours of worry can really start to get to you.
Often, there are mistakes made on credit reports that are difficult to correct. Perhaps someone else’s account is showing up on your credit. Maybe a lender reported the wrong information. I had a lender once report a late payment, while providing a payment schedule that showed I never missed a payment. They refused to remove it, saying that it was indeed late, though they couldn’t give the month it was late. Another lender said that I sent them a check that came back as non-sufficient funds, when it had been an electronic debit over the phone. They had submitted the routing number as the account number, causing the missed payment. Yet they argued with me for days that they were “holding in their hands” the check with NSF marked on it. It took a phone call from my bank to straighten it up.

It can be frustrating. Yet, vital. Your credit report dictates what you pay to borrow money and have insurance coverage. A mistake can cost you thousands of dollars if not cleared up.

You’ve gone through the appropriate channels and provided all of the necessary paperwork. Yet, the creditor still refuses to fix the report. What do you do now?

You can start by writing a statement of up to 100 words that states your dispute of the accuracy of a credit report item. You then submit it to the credit bureau. It will be added to your credit report at no charge.

The law, through the Equal Credit Opportunity Act, requires lenders to consider information that shows that your credit report may be inaccurate. You simply provide the lender with the documentation that proves your dispute. It is best to do this in advance of the lender’s credit check. That way, you are all prepared.

If you feel it is the credit-reporting agency’s fault that the inaccuracy remains on your report, you could sue the credit-reporting agency under the Fair Credit Reporting Act for “negligent” or “willful” noncompliance. If you win, your court costs and attorney fees will be paid.

You can continue to gather your documentation and re-submit your dispute. Perhaps new info and a new set of eyes at the agency will lean more your way.

In general, the best way to remove something is to have the creditor request it be removed. You may be required to provide the creditor with your documentation. They will not admit to having it right out. For example, a credit card company recently sent me a credit card in my maiden name for my mother’s account. She had never requested me to be added to her account. When it showed up on my credit report after three requests to be removed from the account, I was angry. The company swore that they had no records of my name ever being on the account, but that they would have it removed from my credit. It took six months.

Make sure you check your credit report three times a year. You are entitled to one free credit report annually from each of the three major agencies. You can go to www.annualcreditreport.com for more information. When applying for a loan, ask what your credit score is, just for curiosity. Most credit scores can be purchased online for less than $10. Make sure you check your FICO score, as it is the one used by lenders.

Melissa Clark: Melissa Clark is a personal finance reporter at Creditmergency. She has earned a master’s degree in business and economic reporting from New York University. Clark has a bachelor’s degree in journalism from Syracuse University and grew up in Miami, Fl.
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