by Joseph Hazelbaker

Created on: September 05, 2008

Your credit history is crucial, and you would be surprised how often false information appears in credit reports. Fortunately, federal law provides a free process to dispute false information and get your credit file corrected.

The first step is to get a copy of your credit report from each of the three credit reporting bureaus: Equifax, Experian, and TransUnion. Each bureau receives it's information from different sources, so you want all three reports to cover all your bases. You can receive your report free of charge if one of the following two circumstances applies: 1) you have had negative action taken against you (such as being denied credit) within sixty days of your request; or 2) you have not requested a credit report in the last twelve months. The three bureaus have set up a centralized clearinghouse where you can access these free reports, located at www.annualcreditreport .com. If you don't meet either of the two circumstances, you will have to contact each bureau directly and pay for a copy. Their contact information is listed at the end of this article.

Once you receive your report, you will want to familiarize yourself with the abbreviations. Have patience, because the print is small and the abbreviations are numerous. Once you are familiar with the format of the report, get your highlighter ready. Now, make note of each and every negative notation.

The Fair Credit Reporting Act (FCRA) provides a multi-step procedure for attacking false credit information. The first step is to contact the credit reporting bureau in writing. You should lay out the fact of your case demonstrating why the report is inaccurate and include copies of supporting documentation. Make sure you keep your originals, so you have a back-up in case your letters get lost ("accidently on purpose", perhaps?!).

Once you submit your written challenge, the bureau(s) must investigate and respond within thirty days, in most cases. That investigation involves contacting the creditor who reported the information. Both the bureau and the creditor are responsible for correcting false information. If the bureau finds that the information was indeed false, then it must correct your report and send you a new copy of your credit report free of charge. It must also contact the other two bureaus who must also correct your report.

If the bureau will not correct your information, you can demand that a statement be place on your report that you dispute the history. You can also send the dispute statement

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