If you obtain your credit report and find a boo-boo on it that you don’t recognize
as being your mistake or fault, do not assume that the information is correct.
Credit reporting bureaus and the creditors who report credit
information to these bureaus often make mistakes.
You hope and expect that, if a credit bureau has negative and incorrect information
in your credit report and you bring the error to their attention, they
will graciously and expeditiously fix the mistake. If you believe that, you’re
the world’s greatest optimist; perhaps you also think you won’t have to wait
in line at the Department of Motor Vehicles, post office, or your local bank at
noon on payday.
Odds are, you’re going to have to fill out a form on a Web site, make some
phone calls, or write a letter or two to fix the problems on your credit report.
Here’s how to correct most errors that aren’t your fault:
If the credit problem is someone else’s: A surprising number of personal
credit report glitches are the result of someone else’s negative
information getting on your credit report. If the bad information on your
report is completely foreign-looking to you, tell the credit bureau and
explain that you need more information because you don’t recognize the
creditor.
If the creditor made a mistake: Creditors make mistakes, too. You need
to write or call the creditor to get them to correct the erroneous information
that they sent to the credit bureau. Phoning first usually works
best. (The credit bureau should be able to tell you how to reach the
creditor if you don’t know how.) If necessary, follow up with a letter.
Whether you speak with a credit bureau or an actual lender, make notes of
your conversations. If representatives say that they can fix the problem, get
their names and extensions, and follow up with them if they don’t deliver as
promised. If you’re ensnared in bureaucratic red tape, escalate the situation by
speaking with a department manager. By law, bureaus are required to respond
to a request to fix a credit error within 30 days — hold the bureau accountable!
With a minor credit infraction, some lenders may simply ask for an explanation.
Years ago, I had a credit report blemish that was the result of being
away for several weeks and missing the payment due date for a couple small
bills. When my proposed mortgage lender saw my late payments, the lender
asked for a simple written explanation.
You and a creditor may not see eye to eye on a problem, and the creditor may
refuse to budge. If that’s the case, credit bureaus are required by law to allow
you to add a 100-word explanation to your credit file.
Online and in newspapers and magazines, you may see ads for credit repair
companies that claim to fix your credit report problems. In the worst cases
I’ve seen, these firms charge outrageous amounts of money and don’t come
close to fulfilling their marketing hype.
If you have legitimate glitches on your credit report, credit repair firms can’t
make the glitches disappear. Hope springs eternal, however — some people
would like to believe that their credit problems can be fixed.
Remember — if your problems are fixable, you can fix them yourself, and you
don’t need to pay a company big bucks to do it.
as being your mistake or fault, do not assume that the information is correct.
Credit reporting bureaus and the creditors who report credit
information to these bureaus often make mistakes.
You hope and expect that, if a credit bureau has negative and incorrect information
in your credit report and you bring the error to their attention, they
will graciously and expeditiously fix the mistake. If you believe that, you’re
the world’s greatest optimist; perhaps you also think you won’t have to wait
in line at the Department of Motor Vehicles, post office, or your local bank at
noon on payday.
Odds are, you’re going to have to fill out a form on a Web site, make some
phone calls, or write a letter or two to fix the problems on your credit report.
Here’s how to correct most errors that aren’t your fault:
If the credit problem is someone else’s: A surprising number of personal
credit report glitches are the result of someone else’s negative
information getting on your credit report. If the bad information on your
report is completely foreign-looking to you, tell the credit bureau and
explain that you need more information because you don’t recognize the
creditor.
If the creditor made a mistake: Creditors make mistakes, too. You need
to write or call the creditor to get them to correct the erroneous information
that they sent to the credit bureau. Phoning first usually works
best. (The credit bureau should be able to tell you how to reach the
creditor if you don’t know how.) If necessary, follow up with a letter.
Whether you speak with a credit bureau or an actual lender, make notes of
your conversations. If representatives say that they can fix the problem, get
their names and extensions, and follow up with them if they don’t deliver as
promised. If you’re ensnared in bureaucratic red tape, escalate the situation by
speaking with a department manager. By law, bureaus are required to respond
to a request to fix a credit error within 30 days — hold the bureau accountable!
Telling your side of the story
With a minor credit infraction, some lenders may simply ask for an explanation.
Years ago, I had a credit report blemish that was the result of being
away for several weeks and missing the payment due date for a couple small
bills. When my proposed mortgage lender saw my late payments, the lender
asked for a simple written explanation.
You and a creditor may not see eye to eye on a problem, and the creditor may
refuse to budge. If that’s the case, credit bureaus are required by law to allow
you to add a 100-word explanation to your credit file.
Sidestepping “credit repair” firms
Online and in newspapers and magazines, you may see ads for credit repair
companies that claim to fix your credit report problems. In the worst cases
I’ve seen, these firms charge outrageous amounts of money and don’t come
close to fulfilling their marketing hype.
If you have legitimate glitches on your credit report, credit repair firms can’t
make the glitches disappear. Hope springs eternal, however — some people
would like to believe that their credit problems can be fixed.
Remember — if your problems are fixable, you can fix them yourself, and you
don’t need to pay a company big bucks to do it.
No comments:
Post a Comment