If you have ever tried to apply for a credit card,
a car loan, or a mortgage, then you know how important it is to have a good credit score. The truth of the matter is that in today’s debt-overloaded society where many people owe more than they can afford to
pay back, maintaining a good credit score can seem like a daunting task. However, if your credit score seems lower than it should be because of late payments that you are sure never happened, then you are not at world’s end if you have a low credit score based on a erroneous credit report. There are ways that you can repair low credit scores by yourself without having to pay a third-party
debt recovery agency.
The Law is On Your Side – Use It
Luckily, the Fair Credit Report Act includes a clause that protects you from having to suffer in silence when you have mistakes in your credit report. Under this law, the companies that provide your information (the information providers), and the company that they provide that information to (the consumer reporting company) must both take it upon themselves to repair errors in your credit report. So, how can you go about using this law to your advantage? All you need to do is document the inaccuracies in writing and send your request to have your credit amended to the information providers and the consumer reporting company.
Contact the Consumer Reporting CompanyRemember that the more detailed and the more your claim can be supported, the better your chances are at getting an amendment. The consumer reporting company can be thought of as a credit score calculator. They receive information about how you make payments to your creditors, compile that information, and calculate your credit score based on that information. They are the ones who provide your credit score to anyone whom you gave the right to check your credit.
First, you must file a written dispute to the consumer reporting company. Document the reasons for your dispute with copies of receipts or bank statements that show the time, method, and the amount you paid to your creditor. It might be a good idea to include a copy of your report with your written request to have mistakes corrected. That way, you can easily reference the errors in your credit report, and you will make it easier for whoever attends to your file to help you correct the errors. In your written dispute, be as clear and concise as possible. Include your full legal name, your current residence, any mistakes in your report, an explanation for each item that you dispute, and a request for the error to be corrected or negated.
Once the consumer reporting company receives your well-documented request, they will go about verifying whether or not their information is correct. It will usually take them a month or so to get back to you with an answer. The consumer reporting company will pass on the details of your claims to the appropriate information provider.
If there is a consensus between your claims and the information provider then the consumer reporting company will make the proper changes to your credit report. They will send corrections to you and to anyone who looked at your credit report during the previous two years if you make a request.
If your dispute does not result in a correction, you can pay a fee to have a record of your dispute available in your file, and to have the company forward the record to anyone who has recently looked at your report.
Contact the Information Provider
Although the consumer reporting company will forward your claims of inaccuracy to the appropriate creditor, it is to your advantage to also put your dispute in writing and send it off to the creditor yourself. Once again, fully document your claims with copies of anything that support your position. If your claims are found to be true, the creditor will forward the corrected information to the consumer reporting company.