Errors on a credit report can lower a credit score and raise borrowing costs. In Part 3 of our six-part Credit Repair Series, we examine how to identify and dispute inaccurate information. This report is brought to Mid Valley News readers courtesy of the Rio Hondo Community Development Corporation.
Consumer advocates estimate that millions of Americans have at least one error on their credit reports. Even small inaccuracies can affect loan approvals, rental applications and insurance rates.
For residents in El Monte, South El Monte and Baldwin Park, reviewing credit reports is a practical step toward financial stability.
Review Your Credit Reports Carefully
Federal law allows consumers to obtain free credit reports from each of the three major credit bureaus once every 12 months through https://www.annualcreditreport.com. The reports come from Equifax, Experian and TransUnion.
When reviewing a report, check personal information first. Confirm that your name, address and Social Security number are correct. Then examine account listings, payment histories and balances.
Look for accounts you do not recognize, late payments reported in error or debts that have already been paid. Public records, such as bankruptcies or liens, should also match court documents.
Document every suspected mistake. Keep copies of statements, payment confirmations and correspondence that support your claim.
How To File A Credit Dispute
If you find an error, file a dispute with the credit bureau reporting it. You can submit disputes online, by mail or by phone. Many financial counselors recommend written disputes because they create a clear paper trail.
In your letter, identify the specific account and explain why the information is incorrect. Include copies of supporting documents. Do not send originals.
The credit bureau must investigate the dispute, usually within 30 days. It will contact the creditor that provided the information. If the creditor cannot verify the item, the bureau must remove or correct it.
You should also consider contacting the creditor directly. Some errors can be resolved more quickly at the source.
Monitor Updates And Follow Up
After the investigation, the bureau must provide written results. If the dispute leads to a correction, request an updated copy of your report.
If the bureau does not change the item and you still believe it is inaccurate, you may add a short statement of explanation to your credit file. Lenders reviewing your report will see that note.
Correcting errors can improve a credit score over time. While the process requires patience, accurate information forms the foundation of effective credit repair.
In the next installment of this series, we will examine how payment history affects credit scores and outline strategies to rebuild credit after setbacks. For San Gabriel Valley families working toward homeownership or small business loans, taking action on report errors can open doors to new opportunities.
