What To Do With Wrong Credit Information

Under the Fair credit report Act [FCRA], anyone has a right to be given free copies of the credit reports about him once a year

. When you get a copy of the said documents and notice that your ratings were pulled down by wrong information, you must act quickly to rectify this erroneous data.

There are a lot of disadvantages with having a poor credit score. Therefore, inaccurate basis for ratings must not be taken lightly. An evaluator or a reporting company must be informed at once and be asked to correct mistaken grades because these will affect your ability to tap a bank loan or engage in other commercial transactions.

How do you exactly rectify incorrect information?

One way is to write the evaluating agency and inform it about the wrong report. In the letter, enclose a copy of the evaluation report and encircle or highlight the erroneous data. Assign a reference number to each highlighted statement, and make necessary arguments as to why it is being disputed. Enclose pieces of documentary evidence that will substantiate the complaint.

Under the FCRA, credit bureaus should respond to complaints and make necessary corrections within 30 days from the date of filing. This law is specifically intended to protect consumers against adverse consequences of flawed reporting by evaluators.

Another way to correct a wrong basis used in computing one's standing is to directly go to the bank or company that gave a mistaken report to the evaluator. Scores are computed based on the data provided by various companies, like banks and other entities that a person may be indebted to. If the basis is incorrect, then calculation of grades will also be erroneous.

If the two above-mentioned suggestions of rectifying flawed data still do not result in favorable changes to ratings, it would be time to seek legal assistance. Both companies that gave the score and fed incorrect information may be sued if they fail to give justice to the offended person.

Credit scores influence one's ability to do a lot of various financial transactions. A poor rating may make one face difficulty in obtaining a bank loan, in getting an insurance policy, in availing himself of utility services, and even in getting a job.

This is because many companies become reluctant to transact business with people found to have lower ratings. These grades are a perception not only of an individual's financial status, but also of his level of discipline and sense of responsibility when it comes to money matters.

by: Leo Chu

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