Fixing Credit Reports
An FTC study found that a quarter of the people who reviewed their credit reports found at least one potential “material” mistake. The credit industry points out that the FTC study also concluded that just 2.2% of the nearly 3,000 credit reports (5.2% of the participants) had errors severe enough to affect whether a person qualified for credit or earned a better interest rate. The three major credit rating services are Experian, Equifax, and TransUnion. Everyone is entitled to a free report from each of these credit bureaus at AnnualCreditReport.com.
In 2011, roughly 8 million people filed disputes, many challenging mistakes by using the bureaus’ online dispute form. The FTC recommends writing a letter and sending it, along with copies of supporting documents, via certified mail to the credit bureau. Some credit bureaus may be able to resolve the dispute in-house; most disputes are assigned a code that is sent to the debt holder. The person can also file a complaint with their state’s attorney general and the Consumer Financial Protection Bureau.