If there are errors in your credit report, communicate them immediately to your creditors so they can analyze and correct the mistakes if needed. The three main agencies in credit reporting, Equifax, TransUnion, and Experian don't have the power to change credit reports unless these two situations occur:
- Your creditor gives authorization to your credit reporting agency to make changes.
- Your creditor didn't comply or respond to the investigation of your credit reporting agency.
If there are mistakes on your financial report, or if there's a need to justify credit problems, then follow the outlined procedure in the Fair Credit Reporting ACT (FCRA). Below are further steps and guides on how to correct credit problems.
- Get your credit report copy from the credit reporting agencies. Review your financial report for errors, or problems. Send a mailing letter to the credit reporting agencies so they would be informed of the problems that you desire to correct. Include a documentation copy that supports your claim that your financial report data is erroneous. Save a copy of the letter, and your certified mail receipt.
- Send a letter to your creditor through certified mail. Your creditor must be immediately informed that you have credit report problems that need to be fixed. Include a documentation copy that supports your claim that there is an error to your credit report. Demand in your letter that you need the updated record within 30 days. Remind your creditor know that they will violate FCRA if they failed to update your credit report within 30 days.
- Wait for 30 days and check if your credit report problems are corrected. Send a follow-up letter through certified mail to your credit reporting agency if there are still errors or if they failed to correct your report. Include a copy of your letter that you have sent to your creditor.
- Contact FCRA if needed. If there are still errors in your financial record and you can prove that the credit reporting agencies have made a false claim or assertion against you, then you can rightfully sue your creditors. FCRA will secure you against unjust financial reporting and you'll win in small claims court. 79% of all financial reports have some inaccuracies. As much as possible avoid dealing with credit repair companies because they might be scams. It's up to you if you want to seek professional help, but ensure that your preferred credit repair company is genuine. If you are certain that your creditor has make false claims against you, then it is better to seek the help of FCRA.
- Settle your payments on time. When your financial reports have been corrected then ensure that you will become more responsible in paying your bills to help you avoid mistakes in credit reports. Paying your bills fully and paying them before due time will help you avoid future financial problems.
- Sustain a 30% maximum charge level in all your credit cards. Ensure to fully pay your credits every month. Sustaining a low level charge shows responsibility and restraint.
You can fix your financial problems with patience, diligence, intention, and attention. Learn to save money in case the errors in your financial reports are complicated. Ensure that you always have enough savings for the financial security of your family.