How to Negotiate With a Credit Bureau

Credit bureaus are agencies that track and report consumer behavior. There are three major agencies: TransUnion, Experian and Equifax. It is the responsibility of these companies to accurately and fairly report all consumer transactions. These companies do make mistakes and can be influenced, however. But negotiating with a credit bureau takes some savvy.

Instructions

1

Pull an undated copy of your credit report. Visit Annual Credit Report to get a free copy. You should also pay for a three-digit FICO score. This will tell you where you stand on the credit spectrum. Scores below 600 are poor; scores above 720 are excellent.

2

Research your financial records and find out the purpose of your negotiation. It could have to do with an old debt that is still reporting. It could be an error on an existing account. Or it could be an error in your demographic section (address, employer, phone number).

3

Collect all documents relating to the issue at hand, particularly if you are disputing an inaccurate report. Draft a letter explaining the error. Include your name, address, Social Security number, account number and any other documents to support your argument. Send this letter to all credit bureaus reporting the inaccuracy (see Resources for contact information). Credit bureaus must respond to your inquiry within 30 days and fix the error within 90 days.

4

Draft a goodwill letter if you are requesting a change to your account. Goodwill letters are pleas to adjust negative reports. The credit bureaus are under no obligation to change, remove or adjust any legal information (like settled debts, bankruptcies and charge-offs).

5

Try to craft a persuasive, emotive argument when writing your goodwill letter. You cannot negotiate directly with an agent at the bureaus (nor should you as a paper trail is essential). Address any personal issues that led up to negative reporting. These can include: unemployment, medical issues, disabilities or military service.

6

Include copies of any and all documention supporting the argument you develop in your letter. This can include: disability award letters, Social Security statements, medical bills, letters from your physician and military conscription orders. Review your letter for accuracy and grammar and send it off to the credit bureaus. The bureaus must respond within 30 days.