Disputing an item on your credit report is made easier thanks to The Fair Credit Reporting Act. This law requires creditors and credit reporting bureaus to take seriously each request to investigate an item on a credit report. When disputing a claim, it's important to have as much documentation as possible, including receipts and billing letters, to support your claims.
Free Credit Report
The Fair Credit Reporting Act allows you to obtain a free copy of your credit report once every 12 months from the three major credit reporting bureaus: Equifax, Experian and Trans Union. Reviewing your credit report can help you discover potential errors and omissions. You may obtain a free copy of your credit report by visiting each bureau's website, or contacting them by phone or by mail. According to the Federal Trade Commission's website, residents of some states, including Colorado, Vermont, Maryland and New Jersey, have free access to unlimited credit reports.
Investigating an Error
If you discover an error on your credit report, you may contact the reporting credit bureau in writing and request an investigation. You should also include copies of documents which support your claim that the information on your credit report is false. The credit bureau is required under The Fair Credit Reporting Act to conduct a timely investigation into your claim to determine if the debt is yours and if the company has reported your information correctly. This process usually takes about 30 days to complete.
Contact Your Creditor
You may also contact the specific creditor responsible for the false information and inform them of your credit dispute. Many credit card companies have specific divisions devoted to credit disputes. You may be able to settle your dispute by mailing your creditor documentation supporting your position that your account information is incorrect. If your creditor agrees with your position, it's important to request any information communicated to credit reporting bureaus is immediately adjusted to reflect the correct credit information. It is illegal for a creditor to continue to report incorrect credit information once the information is determined to be false.
Correcting Omissions
Some smaller credit cards, including department store accounts, may not report your credit information to credit reporting bureaus. This could potentially harm your ability to secure new lines of credit because your credit history may appear more limited than it actually is. You may make a request in writing for a credit card company to report your credit information to a major credit reporting bureau so your credit report may better reflect your credit history. Your creditor is not required to do this but may do so for a small fee.
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