Utah Foreclosure & Utah Short Sale Blog

3 Simple Steps to Dispute Credit Report Errors

You hear claims all the time on the TV, Radio or other advertisements about credit repair services. In my opinion the term “credit repair” is a bit misleading. In  reality, these companies specialize in disputing errors on your credit report and ensure that lenders have followed the federal Fair Credit Reporting Act (FCRA). So before you go and spend thousands on “credit repair” take some time to understand what you can do for FREE to improve your credit score.

Step1: Get Your Free Report

The first step is to identify what is actually on your credit report. If you haven't seen your credit report for a while, you can order a free report. The FCRA requires the credit reporting agencies to provide you with a free copy of your credit report, at your request, every year.

You can order your free report online at www.annualcreditreport.com, or by calling 1-877-322-8228, or by mailing the Annual Credit Report Request Form to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You’ll need to provide your name, address, social security number and date of birth when you make your request.

Once you have a copy of your credit report you can identify if there are any errors on your credit report. Some common errors are incorrect reporting of late payments or credit information that is older that 7 years. Once you have identified if there are any errors, you can move on to step 2.

Step 2: Send a Dispute Letter to the Credit Reporting Company and Creditor

If you have found inaccurate information on your credit report you will need to send a dispute letter to the credit reporting company and the creditor/information provider. Your letter should clearly identify each item you are disputing and should include any documentation that will support your position.

Remember to only send copies of supporting documents (not originals) and its a good idea to send everything certified mail.

The credit reporting company and creditor generally have about 30 days to investigate your dispute.

Step 3. Follow-up and Repeat

It’s a good idea to make contact to ensure your dispute has been received. You will also want to follow up to ensure an investigation is in process or has been completed. If the creditor/information provider finds that the reported information is inaccurate, it must notify all three major credit reporting companies of the change so that they can correct your report.

So there you have it. Before you go and hire a credit repair company, save yourself money and follow the three simple steps outlined here. For more detailed information, you can visit www.ftc.gov/credit. If your dispute efforts fail or if you want to be more aggressive by hiring a “credit repair” company make sure you take some time and do your homework to find a reputable company to work with.