What should I do if I find mistakes in my credit report?

As you read through your report, make a list of everything that's out of date. The following out-of-date information should not appear in your credit report:

• Adverse information older than seven years, including lawsuits, judgments, paid tax liens, accounts sent to collection, criminal records (except criminal convictions, which may be reported indefinitely), late payments, and any other adverse information.
  
  
• Bankruptcies older than ten years from the date of the last activity (usually the date you received your discharge or the date the case was dismissed, although credit bureaus sometimes start counting from the earlier date of filing).
  
  
• Credit inquiries (requests by companies for a copy of your report) older than two years.
• Overdue child support older than seven years.

Note that some adverse information regarding U.S. government insured or guaranteed student loans, or national direct student loans, may be reported for more than seven years.

Next, look for incorrect information, such as:

• Incorrect or incomplete name, address, phone number, Social Security number, or employment information.
  
  
• Bankruptcies not identified by their specific chapter number.
  
  
• Accounts that are not yours or lawsuits in which you were not involved.
  
  
• Incorrect account histories, such as a history of late payments when you paid on time.
  
  
• Any closed accounts that are listed as open -- it may look as if you have too much open credit.
  
  
• Any account you closed that doesn't say "closed by consumer."

After reviewing your report, complete the "request for reinvestigation" form the credit bureau sent you, or send a letter listing each incorrect or out of date item and explain exactly what is wrong. Once the credit bureau receives your request, it must investigate the items you dispute and contact you within 30 days. If you let the bureau know that you're trying to obtain a mortgage or car loan, it can often do a rush investigation.

If you are right (that the information is inaccurate or incomplete), or if the creditor who provided the information can no longer verify it, the credit bureau must remove the information from your report or modify it based on the results of the investigation. Sometimes credit bureaus will remove an item on request without an investigation if rechecking the item is more bother than it's worth.

If the credit bureau insists that the information is correct, call the bureau to discuss the problem:

• Experian: 888-397-3742
• Trans Union: 800-888-4213
• Equifax: 800-685-1111

If you don't get anywhere with the credit bureau, directly contact the creditor and have the creditor tell the credit bureau to remove the information. Write to the customer service department, vice president of marketing, and president or CEO. If the information was reported by a collection agency, send the agency a copy of your letter too. By law, creditors cannot ignore information they know contradicts information in their file, and cannot report incorrect information when they learn that it is, in fact, incorrect.

If you feel a credit bureau is wrongfully including information in your report, or you want to explain a particular entry, you have the right to put a brief statement in your report. The credit bureau must give a copy of your statement -- or a summary -- to anyone who requests your report. Be clear and concise; use the fewest words possible.

Where do credit reports come from?

Credit reports are compiled by credit bureaus -- private, for-profit companies that gather information about your credit history and sell it to any number of businesses that are allowed to see your credit report: banks, mortgage lenders, credit unions, credit card companies, department stores, insurance companies, landlords, and employers.

Credit bureaus get most of their data from creditors. They also search court records for lawsuits, judgments, and bankruptcy filings. And they go through county records to find recorded liens (legal claims).

Credit reports include noncredit data such as names you previously went by, past and present addresses, Social Security number, employment history, and even marriages and divorces. Credit data includes the names of your creditors, type and number of each account, when each account was opened, your payment history, your credit limit or the original amount of a loan, and your current balance. The report will show if an account has been turned over to a collection agency or is in dispute.

Copyright 2006 Nolo

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DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

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