Share thisReading Your Credit Report
The other main problem with credit report errors is the consumer not reading or researching the account. Over my years in the finance and mortgage industries I have seen and read hundreds, if not thousands, of credit reports. Although, some are harder to read than others. All credit reports follow a basic chart. There is usually a header at the top stating the meaning for each column. A typical heading and entry would look like this:
| Account | Account Number | Open | DLA | Limit | Late | 30days | 60days | 90days |
| Citibank | 123456789 | 8/07 | 4/08 | 4500 | 0 | —- | —- | —- |
| Balance | Open balance | |||||||
| 3200 | 3200 |
A typical credit report entry has the following details:
- Account name (Citibank);
- Account Number (sometimes these are purposely wrong to protect the account);
- Date account was opened (Open);
- Date account was last active (DLA);
- Credit limit (4500);
- Information if there were late payments (how often and how late);
- The current balance;
- There may be other headings for opening balance and / for a close date.
Most of these headings are self explanatory but the usual mistake in this section can be the dates. For instance an account might be open in June 2007 but open account might not be reported to the bureaus until August 2007. At the end of most credit reports is a list of phone numbers for all of the creditors listed.
How to dispute or correct a Credit Report Error
It is important to go through each entry on your credit report. Once you find a possible error in your credit report, research it yourself a bit further. Each possible mistake has to be handled separately and in a specific way. Contact each of the creditors in question. Tell them you are disputing the account and ask how to get this fixed. Chances are they will give you the run around or tell you they can’t find the records. The next step is to contact the three main credit reporting agencies. You will need to send a certified letter to each one of them stating that you are disputing this claim and ask for an investigation. Next send a certified letter to the creditor. This may be the original creditor or the one who bought the account such as another lender or a collection agency. In this letter you should request that they validate their claim. They will return copies of signed contracts, receipts, and so on, if they return anything at all. According to the Fair Credit Reporting and Dept Collection Practices Act they have 30 days to comply with this request. If the creditor does not reply by the deadline send another certified letter to the credit agencies stating that this entry is unvalidated and should be removed. If this error is not fixed or removed from you report you have the right to sue them for violating the Fair Credit Reporting and Dept Collection Practices Act. This can be done on small claims court.
Choosing Your Battle
The above procedure has to be done for every possible error. As this will take time and ...
