Cleaning up Errors and Negative Items
You might discover errors in one or more of your credit reports — or even worse, accurate references to late payments, liens, and collections. Don't panic because the errors can be fixed, and it's possible that some of the negative items can be removed — without help from so-called credit-repair companies.
Once an entry is added to your report, it doesn't drop off for some time unless you prove that it's an error. Positive records are always a plus, but negative entries by your creditors can affect your buying power for many years. Most negative records can stay on your report for seven years. Bankruptcies can remain there for ten.
Disputing Errors on Your Credit Report
Follow these steps to dispute errors that you find on your credit report:
Make a copy of your credit report and circle every item you believe is incorrect.
Write a letter to the reporting agency (the address will be printed on your credit report).
Explain why you are disputing the item, and request an investigation to resolve the issue.
Include copies of supporting paperwork, coding the pages in some way to match dispute paragraphs. Do not send your originals.
Send all materials by certified mail, return receipt requested, so that you can prove the packet was received.
Send a letter of dispute to the creditor whose reports you disagree with. Most billing statements include a special mailing address for disputes.
If your dispute involves your current employment, include a copy of a pay stub or your current W-2 form. If the error involves your current address, include a copy of your driver's license or a utility bill in your name that shows the correct address. Ask the agency for recommendations if you aren't sure what type of proof is required to correct the error.
The reporting agency will initiate an investigation, contacting your creditors or others to verify the accuracy of the disputed entries. If the creditor cannot verify that the information is correct, it must be removed. When the investigation is complete, the reporting agency must send you a free copy of your credit report if changes were made to it.
If the investigation reveals an error, you have the right to ask that a corrected version of your report be sent to everyone who requested it during the past six months.
You can also initiate an investigation from an online credit report. It's an intuitive process, so follow the links and check the disputed items as directed. There sometimes isn't a place for remarks — you must select a multiple-choice reason for each dispute. If you feel that you must be more specific, submit your dispute by mail instead.
If Requested Changes Aren't Made
If the reporting agency verifies that the information is accurate, it must provide you with a written notice that includes the name, address, and phone number of the provider. If you still disagree with the findings, you can initiate another investigation.
If your attempts to correct an entry are unsuccessful, you can ask the reporting agency to insert a 100-character explanation in your credit files that gives your side of the story.
Removing Accurate, but Negative Items
You can dispute a negative item even if you believe it is accurate.
You'll have to follow your conscience on that, but some people have been able to have negative entries removed by repeatedly disputing them with their creditors and the reporting agencies.
If an account that was previously past due has been brought current and has been either paid off or kept current for at least a year, the creditor might agree to delete references to past-due payments. Write a letter requesting that action. Chances are good that they will remove the late notation.
