What You Should Know About Fixing a Credit Report
The first step in fixing a credit report is to read it. You can go online and get a free credit report; just search for “free credit report” to get started. You can get a free copy of your credit report once a year; also, if you are denied credit on the basis of your credit report, you may then request a free credit report from that credit reporting bureau (this must be done in writing within 30 days of the denial of credit).
Reading your credit report should answer the question of why you were turned down. However, what’s the next step? What if there is something inaccurate on your report or something which while not inaccurate, is unfair?
If there are items on your credit report, you can dispute them (in writing) with the credit bureau. They are required to look into any disputes within 30 days. You should send your dispute via certified mail and include any supporting documentation (for example, canceled checks and the like).
In the course of their investigation, the credit agency has to contact the business which reported the inaccurate item. If the agency does not receive proof that the debt is valid within 14 days, they will remove this item from your credit report. You can request that they send this updated report to any creditors who have seen your previous report in the last six months. You need to ask specifically for this, since it is not done automatically.
If the item is over a year old or amounts to less than $500, many creditors will see it as not worth their time and will not respond to the credit reporting bureau. Fixing a credit report can be done, even if the items contained are accurate. If you don’t manage to have the item removed the first time, you can submit another dispute in 30 days.
If a disputed item cannot be removed, you will be allowed to add an explanation of up to 100 words to your credit report; this will be seen by anyone who sees your report. This explanation will be viewable to any prospective creditor who looks at your credit report.
If there is a long history of late payments and defaults, fixing a credit report can be a long term project. However, you can often have some items removed and add explanations of others. This kind of effort will go along way in helping to repair your credit report.
