How to Correct Errors On Your Credit Score

You've just ordered a copy of your credit report and are scanning it when you discover numerous entries you thought were dead and gone. Accounts that were closed, payments marked as late that were actually not, even amounts of credit outstanding that are wrong. Unfortunately, according to a 2004 study, up to 25% of credit reports had inaccuracies in them serious enough to get someone a denial of credit. This inaccurate information may reflect badly on you in the eyes anyone who might be looking at this report to evaluate you for a loan. These errors can lead to your credit score being less than it should be, as the score is calculated from this data. You've got errors and, like small pesky rodents, they are not easily eliminated. Let's look at ways to go about clearing up errors in your credit report, which in turn will help boost your credit score.

First, realize that this is serious business, and treat it as such. Be incredibly organized, document everything. If in the worst case, this dispute became a legal one, being able to produce massive notes and documentation can only help you in a judge or jury's eyes. Note the day, time, and person you talked to and any information they give you about their position or department. Then detail the contents of the call or conversation and either record it in a day planner, computer, or even a free website, whatever you feel most comfortable with. The point is, record it! Do it on the day it occurs to make sure you have every detail fresh. If you wait a few weeks not only will you risk not remembering details, a court may even label this as hearsay, as you wrote it down long after the fact.

Make sure your behavior is polite and impeccable. You may be "mad as hell and not going to take it anymore", but don't let that come through in conversation. Especially don't threaten a lawsuit; that is why you hire a lawyer if it comes to that.

Make sure you are contacting the right person. Generally you'll be in contact with a credit reporting agency, not the creditor. They are the ones with the responsibility to clear up the errors, not the creditors. Try to get names and when you mail your correspondence, the consumer protection laws require that you do, send the letters certified and make sure to save a copy for yourself. Again, the tenor is polite, and businesslike; you're simply trying to correct some errors on your credit report that are affecting your credit score.

You should utilize both the phone as well as written correspondence in your quest to fix these errors. Get something in writing when a creditor tells you they will rectify an error: usually this means requesting a Universal Data Form (UDF) which tells the world about the error.

Fixing errors in your credit report isn't rocket science, but it does take some time and require you to be businesslike and thorough. Do that you have a great chance at success!