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 request your credit report for free once per year. You can also get a free copy of your credit report if you are denied credit based on the report provided by a particular credit reporting agency, as long as you request this within 30 days of the denial.
Reading your credit report should answer the question of why you were turned down. Now that you know this, how can you go about fixing a credit report? Is there items on the report which are inaccurate, or ones which are correct but that you feel to be unfair?
If you want to dispute anything on your credit report, then you can do so in writing to the credit agency. 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 reporting agency then has to contact the source of the disputed item. If the credit bureau does not receive a satisfactory answer within 14 days, they then remove the item from their records and send you a new copy with this item removed. Afterwards, they will send you an updated copy of your report and if you ask them to do so, they will also send a copy to any creditor who has asked to see your report in the last six months. Remember though, you have to ask for this since the agency will not do this otherwise.
If the item is over a year old 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 a disputed item cannot be removed, you will be allowed to add an explanation of up to 100 words to your credit report; this will be seen by anyone who sees your report. If you had a dispute over a charge, you can briefly lay out the details here.
If there is a long history of late payments and defaults, fixing a credit report can be a long term project. Even if this is the case, you can clear up some items and give an explanation of others. This kind of effort will go along way in helping to repair your credit report.
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