How to rebuild a credit report is likely a question you do not ask frequently. And more so, it is a question you do not want to ask. But when you do, it is nice to know that there is an answer that can make a difference.
Credit Card Consolidation
The Fair Credit Reporting Act (FCRA) allows you to rebuild your personal credit report. The FCRA provides you the legal right to dispute information and issues found on your personal credit report. The FCRA, which was enacted in 1971, stipulates that the credit bureaus investigate all disputes that you challenge about credit information on your credit reports.
NOTE: According to the Fair Credit Reporting Act, credit bureaus must complete their investigations of disputes within a 30-day period. Any information that is not confirmed or is found to be inaccurate must be removed from the corresponding report immediately.
Rights Afforded Via FCRA
You should know that if any company rejects your application for credit, employment or insurance, you have a right under the FCRA to request a free credit report within 60 days of the denial. The company refusing your application must disclose which credit reporting company they used for obtaining your credit report.
(3) Major Nationwide Credit Companies
1. Experian
2. TransUnion
3. Equifax
Reporting Errors
It is a fact that reporting errors occur as relates to personal credit. A common figure used for the frequency of errors is approaching 80%. Under the FCRA, credit reporting companies are mandated to correct inaccuracies and incorrect information.
Here are a few recommendations for correcting errors on your credit report:
1. Write to the credit reporting company about the incorrect and inaccurate information.
2. Send copies of supporting documents that will confirm your claims.
3. Using detail, clearly itemize each inaccuracy, explaining why it is wrong.
4. It is a good idea to include a copy of the credit report in question, highlighting the disputed statements.
5. Ask the company to take off the inaccurate and incorrect information from your credit report.
5. Always keep copies of all documents you send to the credit reporting company.
Responsibilities of Credit Reporting Companies
Under the FCRA, the credit reporting companies are obliged to forward the supporting documentation you supplied about the report in question, to companies or organizations that originally provided the disputed information. This company or organization must research and report back to the credit reporting company. If the information is found to be incorrect, it must be corrected. Additionally, the corrections must be reported to the three major credit bureaus, Experian, TransUnion and Equifax.
Plus, the FCRA mandates that the reporting company forward the results to you in writing. They are also madated to send you a free copy of the credit report. You also have the right to ask the credit reporting company to deliver a copy of your corrected report to all those who had asked for it in the last six months. In case a potential employer had received the incorrect report in the last two years, you can request that he/she be sent a corrected credit report, as well.
