Incorrect credit histories are much more common than many people would imagine. Some experts estimate that nearly one-quarter, or 25%, of adult individuals have mistakes on their credit reports through no fault of their own. This is not difficult to imagine when you realize that the huge volume of credit information available on each individual with a credit history is handled by the three main credit bureaus of the nation, Equifax, Experian, and Trans-Union.
To fix incorrect information that has been issued to your credit report, there are several things that need to be kept in mind.
Tip 1 Review All Three Credit Reports On A Regular Basis
Not checking your credit report is one of the biggest financial mistakes that you can make and the neglect could be costing you a great deal of money. Incorrect items on your credit report can cause your credit score to drop, resulting in higher interest rates and the denial of credit in some cases. Not all of the credit reports from the three credit reporting bureaus will reflect the same information so it is really important to check all three to make sure that none of them have any mistakes on them.
Tip 2 Be Professional At All Times
The old saying that “you catch more flies with honey than with vinegar” holds very true in the case of an incorrect entry on your credit history. You will want the person that you talk to about the issue to help you and that person will be more inclined to help you if you are nice and non-confrontational than if you call the company ranting and cursing about how they made a mistake and that they better fix it. By speaking in a calm, clear manner, you will be better able to explain why you believe that the information in your credit report is inaccurate and will be able to understand which steps you will need to take to correct the situation.
Tip 3 Keep Track Of All Steps Taken
When dealing with companies and creditors, an accurate log of whom you communicated with and when could be an invaluable asset. Every time that you talking to a person about the incorrect information on your credit report, you should write down their name, position, way to contact them again, and when you talked to them. If sending correspondence by mail, be use to request a delivery receipt so that you know when the information was received and who signed for it.
Tip 4 Verify The Information To The Best Of Your Ability
In some cases, the information that has been reported to the credit bureau is accurate and it is the individual’s records that are flawed. If you do not remember missing a payment on an account or you believe that a payment was not applied to the account, check your records first for confirmation before you call the credit bureau or the creditor and alert them to the situation. If you do find that the credit report is accurate and the mistake was on your part, try to fix the mistake as soon as possible, by either paying the amount owed on the account or talking with the creditor to create a repayment plan for account balances that are large.
Tip 5 Be Prepared To Take Your Case To Court
Although no one would like the situation to get this far, sometimes it is necessary to go to court to plead your case about removing incorrect items from your credit report. Having accurate records of the steps that you have taken to correct the situation will be very beneficial if you are called to testify in court about the situation and will go a long way towards proving your case, as records show that you tried to resolve the situation by other means before going to court.