You should care about your credit score whether you are a working stiff or a business owner, with very few reasons to ignore it. You need a good credit score to do many things such as purchase a property. take out a business loan, and even apply for a job. A poor credit score can even hurt you if you want to rent an apartment. Your up to date credit report is an important part of this. This is the document creditors, employers, business partners, etc. will use to determine your financial compatibility. Below we will show you six steps to correct your credit report.
1. Get Your Credit Report
You must see your credit report before you can find any inaccuracies. There are several ways to do this including but not limited to:
- The Federal Trade Commission – You’re entitled to one free copy of your credit report here every year. They gather your information from each of the three leading credit reporting companies. You may do so by calling 1-877-322-8228 with your name, address, social security number, and date of birth.
- AnnualCreditReport.com – This is a great option for those who prefer to skip the wait time associated with the above. You fill out a form to receive your credit reports from Experian, Equifax, or TransUnion. The questions are more involved than the above.
- Credit Karma – This credit monitoring agency offers free credit reports from TransUnion and Equifax. They also highlight important items to help make the credit reports easier to understand. They will try to sell you other services, as well. You don’t have to buy them to get your reports.
- Experian – They are one of the three major credit reporting agencies. You may request their credit report directly and allow you to access it every 30 days.
- Your credit card company – Some credit card companies offer you your credit report on a pre-determined basis. Don’t be afraid to ask if they do.
2. How to Review Your Credit Report
Look over all the details on your credit report to ensure sure they are correct. Items to pay attention to include:
- Mistakes on your name, address, or other personal information.
- Accounts that don’t belong to you or someone with a similar name.
- Accounts you closed that are still listed as open.
- Duplicate accounts.
- Late payments that were incorrectly reported.
- Accounts with incorrect balances.
- Incorrect credit limits.
Due to the Fair Credit Reporting Act, the credit bureau and creditor are responsible to correct your credit report if they provide false information.
3. How to Correct Your Credit Report
The first step is to inform the credit reporting agency of their error in writing. Not all three bureaus may have the same data on you. Emphasize the important details about the mistake with proper documentation. Be clear on what the correct data should be. You may use this FTC letter tempate to draft a letter. The credit bureau has 30 days to investigate your claim and respond, as well as notify the agency with the mistake.
4. Inform the Agency
Suppose you have a closed account with Diner’s Club. Lots did so with the advancement of new and improved credit cards. It still shows on your credit report, even though you finalized the balance a long time ago. It is a good idea for you to contact them yourself and let them know about the issue. Modify the template above to your needs to show them the error they made, as well as how best to correct it. Be sure to document all your correspondence with them.
5. Look for Your New Credit Report
Generally, it takes at least 30 days to make any headway in cases like this. Credit reporting agencies are required to inform you of the results of your claim in writing. They are also required to give you a complimentary copy of your new credit report if your claim resulted in a permanent change. You may also ask the credit bureaus to send a corrected report to anyone who has requested it in the last six months.
6. Repeat
Just because your credit report is safe now doesn’t mean it will be in the future. Use the tools provided above to keep up with your credit report.
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If you or your business need help with your credit report or other bookkeeping tasks, feel free to contact us.
