Correcting Your Credit Score

After acquiring a copy of your credit report and looking over it carefully, it comes to your attention that there is an error.

Right there, larger than life, is a charge you didn’t make or an item listed as default that you know you paid off in full.

So what is a smart consumer to do? Call one of those companies that specialize in correcting credit report? No, don’t do that. It is possible to take care of this problem yourself without resorting to spending more of your hard earned cash paying someone else to do it.

Disputing errors on your credit report may be time consuming and you may feel frustrated, but it is very important to get the situation straightened out before it causes any damage to your financial future. Here are a few things and tips to remember as you sort out the mess. First, make a clear copy of the original credit report.

On the copy make notes and mark the items that appear to be an error. Your next step will be to contact the consumer credit reporting company that issued your credit report. Writing a letter is usually a good way to start. In your letter explain what items you wish to dispute and why you feel they are a mistake.

Request that the company investigate the errors. If you have any documented evidence to support your claim, send along copies of it. Do Not Send Originals. You may need them later. A handy tip to keep in mind is to send your letter by means of certified mail.

This way you will receive a receipt that the company has possession of your letter and information. Proof is always helpful in these situations. Also let the retail companies or whom ever you believe is in error know about the error by mail. A letter similar to the one sent to the consumer reporting agency will do nicely.

Now that your initial responsibility is out of the way, here is what to expect next. The reporting company should begin their investigation of the matter. They do this by contacting the creditor you feel was in error and ask for verification of the charge.

If the creditor cannot provide adequate documentation supporting their charge the item is removed from your credit report.

The consumer-reporting agency will then send you a copy of the corrected report. You also have the right to request that they send the corrected version to anyone who may have requested your credit report in the last six months. Consider this service to be a little damage control.

Above we looked at the best case scenario. Now it’s time to check out what happens if the reporting agency stands by the original credit report as accurate. First they must provide you with a document with the name, phone number, and address of the person who decided there is no error.

You may then contact that person and request another investigation. If after the second investigation the result is the same, you do have the option to continue to fight the mistake. It may take awhile but the gratification of knowing your credit report is accurate is worth it.

The consumer can also request a brief insert by the disputed claim explaining your version of the events.  Having a correct and fair credit report is everyone’s right.

While it can certainly be trying and involve a lot of time, it is the consumer’s responsibility to make sure this important credit document is a completely truthful picture of their financial status.