A consumer's credit history is contained in credit reports. They contain information such as payment histories, active loans and amounts due, credit scores, accounts placed in collection, judgments and bankruptcies. The credit history can only be cleared through the the passage of time or by disputing its accuracy. Negative information can remain in a consumer's credit report for as long as 10 years. Disputed information may be removed after an investigation by a credit bureau.
Instructions
Reports Are Key
- 1
Obtain copies of your current credit reports. Under the Fair and Accurate Transactions Act (FACTA) of 2003, consumers may receive a free copy of their reports from the major credit bureaus (Experian, Equifax and Trans Union). Call the bureaus to request your reports.
2Look for expired information in your credit report. Certain information has a time limit that it can remain on your credit report. Civil suits and judgments older than seven years should not be reported. The same is true of accounts placed for collection and other adverse information. Chapter 11 bankruptcy cases older than 10 years should not be reported. Call the credit bureaus to report expired information and ask that they remove it.
3Look for inaccurate information in your credit report. If you discover such information, call the credit bureaus and provide them with the details. You can also send them a dispute letter with the details. Once the credit bureaus receive the information, they will have 30 days to conduct an investigation, unless they deem the dispute frivolous. The credit bureau will contact the creditor to check the information's accuracy.
4Insist on confirmation. If any information changes in your credit report as a result of contacting the bureaus, they are required to notify you in writing. You are also entitled to a free copy of your credit report which will provide confirmation of any changes made. This copy is in addition to any free report you initially received as a result of FACTA.
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