Credit Repair

Statistics show that 70 percent of credit reports contain serious errors that might cause consumers to be denied credit cards, car loans and even mortgages. The good news is that the Fair Credit Reporting Act requires credit-reporting agencies to fix these mistakes. But it takes your diligence to make sure it happens.

The first step is locating any discrepancies in your report. Even the smallest error could seriously dent your credit chances. If you find a mistake, immediately bring it to the credit agency's attention. Remember, there are three credit reporting services -- TransUnion, Experian and Equifax -- so you need to check, and correct, the record held by each.

The links in the letter below will take you to each credit agency's Web page, where you can find details on how to obtain a copy of your credit report. The letter also details what information is needed to successfully correct your mistaken report. Send a separate letter to each agency where a mistake is found. Be sure to explain the situation in detail and include a copy of the credit report with the faulty information highlighted.

Personalize the letter below by entering your specifics in the areas in red. You can print out this Web page and make your changes by hand or copy the body of the letter and paste it into a document where you can make your changes on your PC.  (Copy the body of the letter and paste it into a document where you can make your changes on your PC.)

Date

Equifax Credit Information Services Inc.
https://www.econsumer.equifax.com/consumer/forward.ehtml?forward=home
P.O. Box 740241
Atlanta, GA 30374

TransUnion LLC
http://www.transunion.com/Personal/OrderOtherMethods.jsp
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19022

Experian
http://www.experian.com/consumer/index.html
National Consumer Assistance Center
P.O. Box 2002
Allen, TX 75013

Re: Credit report error

Dear Sir or Madam:

I have discovered inaccurate information on my credit report maintained by credit agency name. The report is in my name -- enter your full name here -- and my Social Security number is enter your Social Security number here.

Enclosed, please find a copy of my credit report containing the mistaken data. I have highlighted the errors. Specifically, the following information is in wrong:

The Fair Credit Reporting Act following defines the following as billing errors that must be corrected. Pick those that apply to your situation and detail for the credit bureau what you believe is the mistake. Be sure to list the creditor's name and account number for which the incorrect data appears:

·                  A purchase made by someone other than the account's authorized user or something that you did not buy.

·                  A disagreement between the purchase price and the price shown on the bill.

·                  A charge for a product or service that was not delivered according to agreement.

·                  Mathematical errors.

·                  Questionable items or any entries for which you need more information.

Please investigate this matter with the creditor in question and you should find there is an error. When that is confirmed, please remove this error from my credit report.

In addition, please make this letter a permanent part of my credit record.

If you have any questions about my request or the credit information in question, please do not hesitate to call me at work or home phone number, depending upon when you would prefer to discuss the matter.

Thank you for your prompt attention to my request.

Your Signature
Your Typed Name
Your Address
City, State and ZIP Code

Enclosure: credit report

The law is on your side
Keep in mind, the law is on your side if information on your credit report is proven to be false but is not removed, according to the Fair Credit Reporting Act. Under the law, you are entitled to actual damages, plus punitive damages that the court may allow if the violation is proved to have been intentional. In any successful lawsuit, you will also be awarded court costs and attorney's fees.

If you feel that a credit bureau has not responded promptly and fairly to your situation, contact the attorney general of your state or the Federal Trade Commission in Washington at 202-FTC-HELP.

You may also sue any credit-reporting agency or creditor for breaking the rules about who may see your credit records or for not correcting errors in your file.

A person who obtains a credit report without proper authorization -- or an employee of a credit reporting agency who gives a credit report to unauthorized persons -- may be fined up to $5,000 or imprisoned for one year, or both.

Who can see your report?
But a lot of people can see that report - including everyone to whom you have applied for a loan or credit. So be careful when applying for credit.

When the companies you apply to check your report they can find out who else has been checking your report and determine what, when and how you have been applying for credit. That means if you have been getting turned down and are desperately applying for credit all over town your potential creditors will know.