How to Challenge Errors On Your Credit Report - For FREE

Don't get taken in by offers in your email inbox to clean up your credit or erase bad credit. The simple, sad truth is that no one can do that for you. But there are steps you can take that cost absolutely nothing, or at most the cost of mailing a certified letter.

Follow these simple steps to challenge the errors on your credit report.

Request your free copy of your consumer credit report from each CRA through http://www.annualcreditreport.com.
Sit down with all three reports, some paper, a pen, and a calendar that goes back at least seven years. (Tip: use your Outlook or other personal information program calendar, or try Google's calendar, which is free.)
Examine all personal information - birthdate, social security number, addresses, and other names - very carefully. Make a note of any errors.
Check the inquiries made into your report. Make a note of any inquiry from an unfamiliar source. If you did not authorize the inquiry, the inquiry should be removed, as it can cause negative action on your credit score and rating.
Look at each active account. Are any accounts listed as open that are closed, or vice versa? Are any accounts listed twice? Are there any accounts listed that are not yours? Make specific notes.
Note any account listed as delinquent that is not delinquent, or any balance that is inaccurate (bearing in mind there can and usually is a significant delay between activity and report so figures may be a few months old - however, seriously inaccurate balances should be rectified).
Examine any judgment listed in the report. Is there any item listed that you're not aware of? Make a separate note of this - you should have an attorney examine this for you in addition to alerting the CRA.
Examine all accounts, especially closed ones, for dates. Generally speaking, items can remain on your report for up to seven years from the date of last activity. Creditors may not sell your account and thereby create a new activity for purposes of this rule; however, any communication or payment from you will trigger the period anew. If there are any items that are older than 7 years (10 years in the case of bankruptcies), make a note. If you have documentation of these accounts, make copies to send with your letter to the CRA.
Do this for each credit report. You will have in the end three separate collections of notes.
Now, using this form letter, or something similar, summarize your findings to each CRA. Attach any documentation. Write your alternate 100-word statements of explanation for each item, in the event the CRA elects not to remove the item.
Mail the packages certified mail, return receipt requested.
Monitor your credit reports every thirty days thereafter to see what actions are taken.

If you follow these steps, and the appropriate changes are not made, or your statement is not included in your report, you may wish to speak to a consumer credit attorney to explore further remedies.

For more detailed information on these and other topics related to consumer credit law, as well as information related to bankruptcy, personal finance, and consumer protection laws, don't forget to add the South Carolina Bankruptcy & Consumer Law Blog to your RSS reader or check the blog frequently for new posts!

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