Your credit history is one of the most important pieces of personal information that you have because it is used in many different parts of your life. An error in your credit history could end up costing you hundreds of dollars in additional interest payments, get you turned down for a loan, have your job application rejected, or disqualify you from renting a particular apartment. Experts estimate that nearly 25% of adults have errors in their credit history through no fault of their own. To fix errors that have been placed in your credit history, there are several steps that need to be taken to ensure that the information has been corrected properly.
1st Step Take The Time To Review Your Credit History At All Three Credit Bureaus
Checking your credit history is one of the easiest ways to discover if there are errors that need to be fixed. Errors in your credit history can cause a drop in your credit score which could result in increased interest rates and the denial of applications for loans or other financial products. Reviewing your credit history reports from each of the three credit reporting bureaus will show you what information is in your credit history and allow you to spot any errors before they become major issues. It is important to check the reports of all three credit reporting bureaus to make sure that none of them contain any mistakes.
2nd Step Check Your Records For Any Information That You Have
If you do not remember having a delinquent payment on an account but one has been reported to the credit bureau, check any records that you have first before calling the credit bureau to report the error. In some cases, it may be a case of a payment that was sent not being applied to the account but in other cases, you may have never made the payment even though you thought you had. By checking your records first, you will refresh your memory about the situation and will know what to say if you need to contact the company about an incorrect item on your credit history.
3rd Step Call Or Contact The Credit Reporting Bureau To Have The Error Corrected
If incorrect information is found in your credit history, you will need to contact the credit reporting bureau to have the information corrected. You will need to explain why you believe that the information in your credit history is inaccurate and ask the person that is helping you which steps you will need to take to correct the situation. The credit reporting bureaus are required by law to investigate allegations of incorrect information in a credit history and must correct any information that is found to be invalid.
4th Step Make A List Of Who You Talk To And When You Talked To Them
When you deal with a company or a creditor, you will want to create a log of what people at the company you communicated with and when the contact occurred. Every time that a different person is contacted about the incorrect information in your credit history, you should write down their name, position, method of contact, and the time of the contact. If any documentation must be sent by mail, pay the extra for a delivery receipt so that you know when the documentation was received by the company and which person at the company signed for the documentation.
5th Step Take Your Case To Court If Needed
If the company is being uncooperative about taking incorrect information out of your credit history, it may be necessary to plead your case in court. In most cases, the threat of having to prove to a court that the information that the company submitted to the credit reporting bureau is valid is enough for them to agree to remove the incorrect items from your credit history. Keeping a record of what steps have been taken to correct the issue will be valuable if you need to testify about the situation and may even prove your case. It is important to treat going to court as a last resort and attempt to resolve the situation using other means first.