Your credit report can have a big impact on your life. If you’re looking to borrow money, your credit report can affect whether you’re able to borrow money and even how much you’ll pay in interest to borrow it.
That’s why it’s important to check if the information on your credit report is correct to protect yourself from identity theft and costly errors that can negatively impact your credit report.
Why Does the Information on My Credit Report Matter?
One of the most important reasons to check your credit report is to catch any identity theft that may be happening in your name. This can happen when someone uses your personal information without your permission.
They might use information like your name, address, Social Security number, credit or bank accounts, etc. They can use this information to open new accounts in your name, such as credit cards, phones, electricity, or medical care.
When they inevitably don’t pay for these services, it ends up on your credit report as an unpaid or delinquent charge, which can tank your credit report.
How Can I Check My Credit Report to Stop This?
Every 12 months, you are entitled to receive a free copy of your credit report from the three major credit bureaus - Experian, Equifax, and TransUnion.
You should check the information on each report carefully to ensure there are no errors, such as the wrong name, address, or payment date.
If there is an error, you will need to take it up with the credit bureau and the business that supplied the information. They are required to fix any errors for free.
How Do I Actually Correct the Information On My Report?
To correct any errors, you will need to dispute the information with the credit bureau and the company that provided the information.
Reporting to the Credit Bureau
You should write to the credit reporting company that made the error and explain what is incorrect on your report and why it is incorrect. You’ll need to include copies of any supporting documents to help your dispute. You should also include the credit bureau’s dispute form if applicable.
After you send in your dispute, the following will happen:
The credit bureau conducts an investigation
The credit bureau has 30 days to investigate your dispute, regardless of the method you used to file.
However, they may stop investigating if they deem your claim to be “frivolous” or “irrelevant.” They must notify you of this reason within 5 business days of this decision if they elect to do so.
The credit bureau sends the dispute to the business
The credit bureau will send your evidence to the business that reported the information.
The business will investigate the dispute and send the results back to the credit bureau.
If they find that they reported inaccurate information, they must correct the information in your file by notifying all three credit bureaus.
You receive the results
The credit bureau will notify you in writing of the results of your dispute. If there was a change made to your credit report, you will receive a copy of it free of charge.
They will also send any corrections to anyone who received your report in the last 6 months if requested.
They can also send notice to anyone who received a copy of your credit report for employment purposes within the past 2 years if requested.
Reporting to the Business
In addition to disputing the information with the credit bureau, you should also dispute the inaccurate information with the business that reported it.
When sending your dispute, you should include:
Your complete name and address
Each piece of inaccurate information. List what you want fixed and why.
Copies of supporting documents (don’t send the originals).
After you send the dispute to the business:
They must inform the credit bureau about your dispute if they keep reporting the disputed information to the credit bureau. The credit bureau must include a notice that you’re disputing the information as inaccurate or incomplete.
If your information is inaccurate or incomplete, the business must inform the credit bureau to change the information on your credit report, either by updating or deleting it.
Continue to Monitor Your Credit Reports
After your dispute is settled, you should continue to review your credit report to ensure that the inaccurate information is removed.
Going through the dispute process is a taxing and confusing process, especially if you’re already experiencing financial difficulty.
If you’re looking for a loan but are having trouble because of an error in your credit report, AMG Finance is here to help.
We can help you get a loan even if your credit score is down at the moment. Find a convenient branch near you to get the financial help you need today.
