Today's tough lending standards make it more important than ever to have a credit report that's free of blemishes.
Negative records can lead to higher interest rates for mortgages, car loans or credit cards and might keep you from being approved at all.
In addition, many employers now examine credit reports before hiring candidates so negative records could keep you from landing your dream job - or even a not-quite-your-dream job.
Your credit report will rightfully reflect late or missed payments, but what if it includes records of late or missed payments even though you've made all of your payments on time? Or it lists an account you never opened? False information on your credit report can have a significant negative impact on your credit rating so it's important to keep an eye on these reports to ensure the information they contain is correct.
The Fair and Accurate Credit Transactions Act of 2003 allows people to receive one copy of their credit report for free each year from each of the national consumer credit reporting agencies - Equifax, Experian and TransUnion.
You can obtain your report at annualcreditreport.
com, a central online site created by the three primary credit agencies.
When you receive your report, review it closely for any errors.
Red flags to look for include: · Unfamiliar accounts · Inaccurate employment history · Accounts listed multiple times · Incorrect mailing address The Fair Credit Reporting Act requires credit reporting agencies and information providers to correct inaccurate records in your report.
First, make sure the false information is actually "false" and not an account you've forgotten about.
If you do find discrepancies, you can take action to clear those false records from your report.
1.
Contact the credit bureau If you discover false information on your credit report contact the credit bureau right away.
You can file a claim online but some claims require you to mail in the information with supporting documentation.
Make sure you have a copy of your credit report, which record you are disputing, the reason for the dispute and any paperwork you have that proves the information is incorrect.
If you dispute your claim by mail, be sure to include copies of your information - not original documents, and choose "USPS Return Receipt" to ensure it arrives at its destination.
2.
Contact the creditor Let the creditor know you are disputing the record.
You also may send them a copy of the information you sent to the credit reporting agency.
3.
Maintain your records Keep a copy of any information relating to your dispute (i.
e.
, credit report, payoff letters, etc.
).
Whenever you correspond with the credit bureau or the creditor, be sure to take notes and record the name of the representative you speak with for future reference.
4.
Be patient After the credit agency receives your claim they will investigate it with the creditor.
The creditor will investigate the claim for accuracy and will then submit a response to the credit bureau.
If the creditor can't verify the information the record will be removed from your report.
This investigative process usually takes about 30 days but in some circumstances it can take up to 45 days.
You can contact the credit bureau for more information about the time frame for your specific dispute.
You should also take the time to keep accurate and organized records in the event you need to follow up with the credit bureaus.
While most investigations are handled in a timely and reasonable manner, there is certainly a benefit in doing your own follow up work and keeping tabs on the timeline.
Negative records can lead to higher interest rates for mortgages, car loans or credit cards and might keep you from being approved at all.
In addition, many employers now examine credit reports before hiring candidates so negative records could keep you from landing your dream job - or even a not-quite-your-dream job.
Your credit report will rightfully reflect late or missed payments, but what if it includes records of late or missed payments even though you've made all of your payments on time? Or it lists an account you never opened? False information on your credit report can have a significant negative impact on your credit rating so it's important to keep an eye on these reports to ensure the information they contain is correct.
The Fair and Accurate Credit Transactions Act of 2003 allows people to receive one copy of their credit report for free each year from each of the national consumer credit reporting agencies - Equifax, Experian and TransUnion.
You can obtain your report at annualcreditreport.
com, a central online site created by the three primary credit agencies.
When you receive your report, review it closely for any errors.
Red flags to look for include: · Unfamiliar accounts · Inaccurate employment history · Accounts listed multiple times · Incorrect mailing address The Fair Credit Reporting Act requires credit reporting agencies and information providers to correct inaccurate records in your report.
First, make sure the false information is actually "false" and not an account you've forgotten about.
If you do find discrepancies, you can take action to clear those false records from your report.
1.
Contact the credit bureau If you discover false information on your credit report contact the credit bureau right away.
You can file a claim online but some claims require you to mail in the information with supporting documentation.
Make sure you have a copy of your credit report, which record you are disputing, the reason for the dispute and any paperwork you have that proves the information is incorrect.
If you dispute your claim by mail, be sure to include copies of your information - not original documents, and choose "USPS Return Receipt" to ensure it arrives at its destination.
2.
Contact the creditor Let the creditor know you are disputing the record.
You also may send them a copy of the information you sent to the credit reporting agency.
3.
Maintain your records Keep a copy of any information relating to your dispute (i.
e.
, credit report, payoff letters, etc.
).
Whenever you correspond with the credit bureau or the creditor, be sure to take notes and record the name of the representative you speak with for future reference.
4.
Be patient After the credit agency receives your claim they will investigate it with the creditor.
The creditor will investigate the claim for accuracy and will then submit a response to the credit bureau.
If the creditor can't verify the information the record will be removed from your report.
This investigative process usually takes about 30 days but in some circumstances it can take up to 45 days.
You can contact the credit bureau for more information about the time frame for your specific dispute.
You should also take the time to keep accurate and organized records in the event you need to follow up with the credit bureaus.
While most investigations are handled in a timely and reasonable manner, there is certainly a benefit in doing your own follow up work and keeping tabs on the timeline.