Credit reports are the basis on which lenders decide to provide a loan or a credit card to consumers. However, credit reports may also in some cases be mistakenly reported. In such a situation, a consumer can apply to change the relevant portions of the report in order to keep one’s credit history intact.
If one finds out mistakes in one’s credit report, one may want to dispute the information and work to get it corrected. Consumers who fight against such misrepresentation are protected by the Fair Credit Reporting Act, which requires that all credit reporting agencies such as Experian, TransUnion, etc, respond with an investigation within a specific period of time.
Once the false information is identified, it will be immediately removed from the credit report or corrected within thirty days. Similarly, if the lender is unable to prove the information, it will be considered inaccurate and will have to be changed.
When one gets a credit report, it is a good practice to look for specific parts of the report. For example, one needs to be careful about inaccurate details such as late payments that may not be true. It is best to keep ready backup information such as cancelled checks or statements in order to prove one’s positions regarding inaccurate information in the credit report.
Sometimes reports may also contain outdated information, which needs to be corrected by the consumer. Consumers need to be aware of the fact that negative account information can only be reported for seven years after the first delinquency, except in the case of Chapter 7 bankruptcy. Consumers also need to be aware of accounts appearing on the credit report that one did not open. Such information could happen when one is a victim of identity theft.
Consumers need to file their complaints in writing. A letter maybe sent to the credit reporting agency. The complaint may also be sent online. The credit reporting agency will investigate the dispute claim and come to a conclusion in 30 days. Any changes will be reflected in a new credit report that will be sent free of cost.
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