The first step in fixing a credit report is to read it. You can get a free credit report online (just look up free credit report). You can get a free copy of your report once a year, as well as when you are denied for credit ” you can request a free copy of your credit report from the credit agency which supplied the report to the prospective creditor who turned you down.
Once you see your report, you will know why you were denied credit. But, whats the next step? What do you do if you see inaccurate items on your report or ones which you feel to be unfair, even if they are accurate?
If there are items on your credit report, you can dispute them (in writing) with the credit bureau. You have to tell them that a given item is incorrect and by law they must investigate the matter within 30 days. You should send your dispute via certified mail and include any supporting documentation (for example, canceled checks and the like).
The credit bureau will contact the organization which reported the item in dispute; they will then have 14 days to respond with proof. If they do not do so, then the credit agency must remove the item from your credit report. Afterwards, they will send you an updated copy of your report and if you question them to do so, they will also send a copy to any creditor who has questioned to see your report in the last six months. But, if you want this done, question the bureau to do so ” they will not do this unless you question.
If the item is over a year ancient or amounts to less than $500, many creditors will see it as not worth their time and will not respond to the credit reporting bureau. Fixing a credit report can be done, even if the items contained are accurate. If you don’t manage to have the item removed the first time, you can submit another dispute in 30 days.
If it is impossible to remove an item that you have disputed, you are permitted to add a brief explanation, which will be visible to anyone who pulls your credit report. This explanation can be up to 100 words in length.
But, if your credit report is a problem because of a history of defaults and late payments, than fixing a credit report can take time. Even if this is the case, you can clear up some items and give an explanation of others. This will make your credit report a small better while you work to rebuild your credit history.