Your credit score is used to determine your eligibility for much more than new credit cards. Job applications and insurance policies can also be turned down if your credit report is spotty. Under the Fair Credit Reporting Act, you have the right to get a free credit report every year. The Federal Trade Commission has set guidelines for resolving inaccuracies on your report.

Get Your Free Credit Report

The Fair Credit Reporting Act states that you can ask for a free credit report every year, or within 60 days of an adverse action taken against you based on a poor credit rating. Go to the official Federal Trade Commission clearinghouse site at http://www.annualcreditreport.com to fill out a request. There are many for-profit businesses which claim they also offer a free credit report, but they will charge for services in the fine print, so don't be fooled by lookalike URLs and advertisements.

Disputing an Erroneous Entry

Correcting a mistake on your credit report is typically a three-step process, as there are three groups you'll need to communicate with in order to dispute an error: the reporting agency which included the error in its report; the creditor which may have originated the error; and the Federal Trade Commission itself. There are three national credit reporting agencies which may contribute to your credit score: Experian, TransUnion and Equifax. The agencies involved with your personal score will be included in the documentation. Contact them at the phone numbers or URLs listed on the Federal Trade Commission's website. They will provide you with detailed procedures for disputing your score, which will include submitting a written request for a change to your score along with substantiating documentation. Send copies of any documentation that proves an incorrect credit score entry; keep all originals in your files so you can refer to them again in the future. The Federal Trade Commission provides sample letters you can use to model your letter to the credit agency. A similar letter should be sent to the creditor which is cited in the mistaken entry on your score. Contact it directly first, to determine if the error originated in its system, or if the mistake was made at the credit reporting agency. If the creditor states that it has the same entry in its own system, send a copy of your written dispute claim.

Source:

AnnualCreditReport

Your Access to Free Credit Reports

How to Dispute Credit Report Errors