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What to Do If You Find Errors in Your Credit Report

According to a 2012 report from the Federal Trade Commission (FTC), about 20% of
consumers have errors on their credit report, and that 5% of consumers had errors that

could “lead them to paying more for products such as auto loans and insurance.”

If you discover an error on your credit report, you’ll have to deal with the credit reporting
agency (TransUnion, Equifax, Experian) and the information provider (company who

sends your info to the bureaus).

The FTC recommends a two-step process. First, send a dispute letter to the bureau
reporting the error. The more information you can send, the better.

Second, send a dispute letter to the information provider and tell them about the error

and that you’ve notified the credit bureau(s) about the error.

The credit bureau usually takes about 30 days to make their decision. If they decide to
change your credit report, the information provider must contact the three major credit

bureaus and ask them to update your file.

Chapter 7 Summary:

• Maintaining good credit scores requires weekly or daily checks of your credit scores
and/or credit history.

• About 20% of credit reports have errors.
• Any errors must be disputed with the credit bureau first, then the information

provider.
• If you’re the victim of identity theft, request a fraud alert and credit freeze from one

of the three credit bureaus.
• File a police report about the identity theft, then request copies that you can send to

the credit bureaus.

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