Learning How to Correct Your Credit Rating
If you are checking out your credit report and you see an error, what should you do? Even if you have not been the victim of criminal identity fraud, it is likely that there is problematical information in your credit report. Information contrary to fact makes its way onto people's credit reports all the time, not because of any malicious action, but simply because people make mistakes entering data into the databases upon which the credit reporting agencies make their reports. For instance, information for a relative or other person with a similar name may be on your report -- for a number of years, I kept getting information about my brother's student loans on my credit report because our first names are similar. In my case, it was a minor nuisance because his loans were not in repayment at the time, but when they went into repayment, it could have had adverse affects on my ability to get credit even when he faithfully made all his payments, simply because lenders would count those loans as part of my total indebtedness. It could have been even worse if information from someone who had defaulted on a loan had gotten onto my credit report.
You do not have to pay a lot of money or see a specialist to get these sorts of errors fixed. Dealing with it yourself is completely within the skills of ordinary people -- it just takes some time and effort. Your first step is to get a copy of your credit report and circle any items that you think are wrong. Also, look very closely to make sure there is nothing left out -- loans that you have paid off that are not recorded as such do not give you the benefits you should be receiving for having paid off a loan. The next step is to write a letter to the credit agency explaining exactly what information you believe to be incorrect. The address for the agency should be listed on the credit report. You need to be sure that you include copies of all the documents supporting your claim, such as paperwork showing that a loan has been paid off. Make sure to send photocopies, not the originals, which you need to keep in your own files. You should send all this material by certified mail and get a tracking number from the post office to be sure that it was shipped and it was received.
It is the responsibility of the reporting agency to investigate your claim and verify the information that you have disputed. If the creditor cannot prove that their information is correct, the entry must be removed with no questions asked. It is probably just a clerical error on their part and when they inform the credit reporting agency to that effect, it will be removed from your permanent record. Once the investigation is finished, and the changes are made, the agency will give you a copy of your credit report free so that you have proof of the changes that have been made.
Errors happen in all aspects of our lives, and our credit reports are not any exception. When you discover such an error, don't lose your temper or regard yourself as personally wronged. Instead, just deal with the mistakes in a calm and businesslike fashion. Your credit agency should take care of everything as soon as they are notified of the problem and help you resolve it without putting any additional obstacles in your path. It is your responsibility to keep an eye on your credit report and to review the paperwork you receive from your various lenders. If you do not keep track of things, you may not even know if your credit score is being affected by erroneous information until you are turned down for credit.
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