I have been a mortgage lender for 19 years and the question I've heard
the most is, "How can I fix the error on my credit report?" Consumers have
the right, under the Fair Credit Reporting Act, to dispute the completeness
and accuracy of information on their credit files.
Fixing a Credit Report Error
When a credit reporting agency receives a dispute, it must reinvestigate
and record the current status of the disputed items within a "reasonable period
of time," unless the agency believes the dispute is "frivolous or irrelevant."
If the credit reporting agency cannot verify a disputed item, it must delete it.
If a credit report contains erroneous information, the credit reporting agency
must correct it. If an item is incomplete, the credit reporting agency must
complete it.
For example, if your credit file shows that you were late in making payments
on accounts, but fails to show that you are no longer delinquent, the credit
reporting agency must show that your payments are now current. If your file shows
an account that belongs to another person, the credit reporting agency must delete
it. Also, at your request, the credit reporting agency must send a notice of
correction to any report recipient who has checked your file in the past six months.
For items in your credit profile which you feel deserve further explanation
(such as an account that was paid late due to the loss of job, military call-up,
or unexpected medical bills), you can send a brief statement to the appropriate
credit reporting agency. The information will be placed in your credit profile
(in the comment section) and will be disclosed each time it is accessed.
Credit Profile Accuracy
Consumers need to make sure their "credit profile" is accurate and current with
each credit repository (Experian, TransUnion, Equifax). A credit profile details
your credit history as it has been reported to the credit reporting agencies by
lenders who have extended credit to you. Your credit profile lists what types of
credit you use, the length of time your accounts have been open, and whether you've
paid your bills on time. It tells lenders how much credit you've used and whether
you're seeking new sources of credit. Basically, it is a picture of how you paid
back the companies you have borrowed money from and how you have met other financial
obligations.
There are usually five categories of information on a credit profile and each
section should be monitored for accuracy:
- Identification Information
- Employment Information
- Credit Information
- Public Record Information
- Inquiries
Some of the items that are NOT included on your credit profile include the following:
- Your race
- Your religion
- Your health
- Your driving record
- Your criminal record
- Your political preference
- Your income
Credit Reporting Agencies
Credit Reporting Agencies collect information about you and your credit
history from public records, your creditors and other reliable sources. These
agencies make your credit history available to your current and prospective
creditors and employers as allowed by law. Credit agencies do not grant or deny
credit but they are responsible for correcting errors on a credit report.
In case you have a legitimate error to report, the agencies are available by
mail and by phone. The contact information for each credit reporting agencies
are listed below:
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Equifax
PO Box 105873
Atlanta, GA 30348
800-685-1111
Experian
PO Box 2002
Allen, TX 75013
Consumer Credit Questions
888-EXPERIAN (888-397-3742)
Trans-Union
PO Box 390
Springfield, PA 19064
(800) 916-8800
(800) 851-2674
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I hope that this article arms you, the consumer, with information that will
help you fix errors on your credit report. You can do it yourself - it's free.
You do not need a company to do this for you. You just have to have patience and
be able to write letters and provide documentation proving that an item contained
in your credit profile is wrong. You have to be like Joe Friday in Dragnet and
deal with "just the facts." The agencies like to see documented, proven written
facts in order to modify your credit profile. Be organized and be truthful and
chances are the mistakes will be removed and you can have a "clean" credit report.
The credit agencies believe in the saying that "the truth will set you free." Give
the credit bureaus the truth and you will be free, free at last, free of credit
report errors.
PAUL E. SCHEPER is a licensed real estate mortgage broker and an 18-year veteran
in real estate lending. If you have any questions, he can be reached at 949-709-7115
or via his web site at www.PaulScheper.com.
