The first step in your credit repair strategy is to check your credit report for errors. It’s also the fastest way to repair your credit is to remove errors. If you observe an error in your credit report, you need to get it fixed immediately. Any loan or mortgage you want depends on your credit score for approval; thus, having erroneous items on your credit score can be very damaging. The good thing is that there is a proper procedure in place to ensure that corrections happen swiftly. According to the law, any dispute you send must be answered within 30 days unless it is frivolous. If you notice discrepancies, there are two entities you need to contact: the credit reporting company and the information provider.
Contacting the Credit Reporting Company
You need to let the credit reporting company know about the dispute. Write them a letter and include copies of documents which validate your dispute. Don’t worry about what to write in the letter; the Federal Trade Commission provides a good sample letter which you can use.
If your dispute is valid and it results in a correction, then the credit reporting company will provide you an amended credit report free of cost. You are also allowed to ask them to send the corrected report to anyone who got a wrong credit report about you in the last 6 months.
If the dispute is not resolved and the credit reporting company does not think an amendment is required, you can ask them to include the dispute in your credit report. This will not improve your score, but it will let anyone viewing the report know that you dispute a part of the record.
Contacting the Information Provider
The information provider is the entity who provided the information to the credit reporting company. You have to write them a letter (FTC also has a sample letter for this) and include copies of documents which validate your dispute. If the information provider agrees to a correction, then it must send a notice out to all the three credit reporting companies about the erroneous item so that it can be corrected. You can see the address of the information provider in your credit report; if you do not then you can either contact the information provider and ask for their mailing address, or send it to any business address that involves the information provider.
These errors can be costly for you when applying for a loan, so make sure you get any error in your report corrected.