According to members of the Credit rating industry, it is quite a norm that about 80 percent of the Credit Reports contain some errors in one way or the other.
So it is not a surprise that when you get your credit report each year, you are bound to find some errors in them.
You should not react overtly but act to amend them immediately.
Step-By-Step Credit Error Correction Process Your duty in this is to photocopy of the Credit Report and underline every error.
Then write a letter to the credit agency which sent you the report, the address of which will be on the report, pointing out the errors, and provide the correct information.
Remember to photocopy any receipts and other documents to support your case, and send the supporting documents together with the letter.
When you've gathered everything, send the material by certified mail, with a signature required, so you can be sure that your package arrived at the agency and was received.
The credit agency will begin an investigation, to verify that the information that you sent them is correct.
Upon completion, the credit agency is bounded to send you a free copy of your report if amendments and changes were made.
Note that it is imperative that you ask for an updated and corrected copy of the report be sent to all credit related parties who received a copy of the incorrect report in the last six months.
In Dispute Situations Situation 1 is when the credit agency refuses to correct the inaccuracies in your credit report.
You will probably be informed that their investigation has revealed no discrepancies.
At this stage, you can ask for the name and the contact details of the investigator who compiled the report.
You're also entitled to ask for a second investigation.
Situation 2 is when the credit agency maintains its stand after a second investigation.
When the report is accurate, and you're sure that it isn't, you should request that a 20 words explanation be placed next to each inaccuracy.
For instance, This information is disputed as inaccurate, or subject states invoice paid in full, etc.
Situation 3 is when If the agency will not correct an item, and you still want it corrected.
When you know that an item in the report is simply wrong have the documentation to back it up, yet the agency still refuses to correct it, and you want that corrected regardless.
Stand by your principles, although you may need to conduct your investigation, approaching third parties who made the report to the credit agency, that is those who says that you defaulted on a loan, or a bank which states that you were refused credit.
This could turn out to be a rather tedious task by any standard, what with staff movements and business coming and going.
Keep Your Supporting Documents Handy Keep copies of all the letters you have written, and all responses you received.
Just in case you need to apply for any loans or credit lines, these will become very handy and also give your potential creditors the impression that your are actively and seriously trying to get the mistake corrected.
And of course, you must come across to your potential lenders as being completely open about the error on your credit report.