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How to Fix Credit Report Errors - [BACK] The two biggest credit report agencies in the UK are Equifax and Experian and each year these companies process enormous amount of information about consumer credit actions. Naturally, it is a realistic expectation that there could be a mistake on anyone's credit report and it is up to the consumer to keep tabs on their personal reports. This is an especially important part of personal financial management because at times these mistakes can be serious enough to damage your credit worthiness. Most consumers do not even know these mistakes are present until they are actually denied credit. So what happens if you discover a serious mistake on your credit report? Here are some of the things you can do to handle the situation and work through getting your credit righted. Prepare To Be Professional Defending yourself against a credit mistake realistically could end up in court. While most cases do not go that far and can be resolved before litigation comes into play, consumers need to prepare for that possibility. Preparation involves always acting business-like and professional during each phone call or other interaction with the credit bureau and its representatives. Regardless of the level of your anger and frustration, do not yell or curse or disrespect company personnel, even if they do not treat you with respect. It may not be necessary to file a lawsuit, but if all of your attempts for resolution fail, it is justifiable to clear your name in a legal forum. However, you should not threaten any legal action unless you firmly intend to do just that. Contact the Right Party The Fair Credit Reporting Act requires the credit report agencies to make corrections but does not require the creditors to do the same. Some experts say it is correct to contact only the credit reporting bureau and start an investigation of information. However, many people will contact both the creditor and the bureau to clear up the mistake. If the creditor is the one making the mistake, it is important you ask for a correction, preferably in writing, and additionally request that the new information be submitted to the credit reporting agencies. When speaking with a representative and you find you are not getting anywhere, keep moving up the chain of command until you find someone to help you get results. Keep Accurate Records Keeping in mind a potential court case, you need to document every move you make involving you attempts to clear up the mistake. Keep accurate records in writing that describe each phone call, along with times, dates, and names, and phone numbers of all parties contacted. Write down the results of each phone call and every subsequent step taken. Make sure you log the information as it happens so you do not miss any details. Not only do you need to take notes, you need to keep notes legible and organized should they be needed at a later date as proof in court. Put It in Writing/Get It in Writing While many people opt to place a phone call initially to inquire about the mistake, it is best to put it in writing. If you plan to send the letter, make sure you spend the money to mail it certified with a receipt confirmation so you will know the letter was received. You should mail letters to both the creditors and the credit bureaus. Not only are you required by the reporting agencies to notify them in writing, you also want written proof of your communication. Address your letters to the representative you spoke with and always make sure you always get the proper spelling of both and last name correct. Ask For Confirmation When you finally get the results you were seeking, make sure you request a confirmation from the creditor that outlines what changes will be made. Specifically ask for a copy of the Universal Data Form, which is the document creditors submit to the credit agencies to update consumer records. If the creditor will not provide the Universal Data Form, request a letter confirming the change was issued to the credit agency. Applying for a Loan Once you have taken the necessary steps to examine and, if necessary, amend your credit report, then you’re on the way to gaining credit. However, it’s imperative that you don’t set the bar too high for yourself. Only go for rates that are obtainable for someone on your credit score – if you have many negative scores then you won't be able to get the best rates available, so there’s not much point in applying for them – it will only affect your credit report for the worse. Consult comparison tables for loans on websites such as Beatthatquote.com and check out what you can afford from Alliance and Leicester's loans calculator. [BACK] |