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Credit Library
Correcting Errors on Credit
How Do I Correct Errors?
Send a copy of your credit report to all three agencies along with a detailed letter, pointing out each
"trade line" (debt)your questioning. If you have proof of payment, or proof of timely payment, include a
copy(save your original receipt) of the proof, if it is a joint account make sure you include both Social
Security numbers, and request that they delete the adverse rating/reporting for the "tradeline" in
question. Always send by certified mail, since that will be your record that the credit agency has received
your dispute.
The credit agencies have 30 days to respond to your dispute and they must give you the written results.
If the investigation does not resolve your dispute, have the credit bureau include your version of the
dispute in your file and in future reports.
If the reporting agency cannot verify a disputed entry, they must delete it. If the information is
incomplete, they must complete it. For example, if you were temporarily delinquent on an account, and
then brought it current and the bureau's report does not reflect that, they must correct your record. Also,
if your file should show someone else's account(this sometimes happens with a "Junior-Senior"
relationship or with common names) they agency must delete it.
CONSUMER RIGHTS
A good credit rating is very important. Businesses inspect your credit history when they evaluate your
applications for credit, insurance, employment, mortgages and leases. Based on your credit payment
history, businesses may choose to grant or deny credit, provided you receive fair and equal treatment.
Sometimes, things happen that can cause credit problems: a temporary loss of income, an illness, even a
computer error. Solving credit problems may take time and patience, but it doesn't have to be an ordeal.
The Federal Trade Commission (FTC) enforces credit laws that protect your right to obtain, use, and
maintain credit. These laws do not guarantee that everyone will receive credit. Instead, the credit laws
protect your rights by requiring businesses to give all consumers a fair and equal opportunity to
receive credit and to resolve disputes over credit errors. This document explains your rights under these
laws and offers practical tips to help you solve credit problems.
CO-SIGNING A LOAN
If a relative or friend asks you to co-sign a loan, make sure you understand what co-signing involves.
You are being asked to guarantee the debt, so think carefully before you do:
1. If the borrower does not pay the debt, you will have to, so make sure you
want to accept the responsibility.
2. You may have to pay up to the full amount of the debt if the borrower does not pay and you may also
have to pay late fees or collection costs.
3. When you take the responsibility of co-signing for someone, your credit report will be affected if the
borrower does not pay on time or at all. The co-signed loan or credit account will be reported under your
social security number, showing: on-time pay, late pay, collections, etc., whatever the status
is of the borrower's repayment or non repayment ability.
Individual Account
Your income, assets, and credit history are considered by the creditor. Whether you are married or single,
you alone are responsible for paying off the debt. The account will appear on your credit report, and may
appear on the credit report of any "authorized" user. However, if you live in a community property state,
you and your spouse may be responsible for debts incurred during the marriage, and the individual debts
of one spouse may appear on the credit report of the other.
Advantages/Disadvantages: If you're not employed outside the home, it may be difficult to demonstrate a
strong financial picture without your spouse's income. If you open an account in your name and are
responsible, no one can negatively affect your credit record.
Joint Account
Your and your spouse's income, financial assets and credit history are considerations for a joint account.
No matter who handles the household bills, you and your spouse are responsible for seeing that debts
are paid. A creditor who reports the credit history of a joint account to credit bureaus must report
it in both names (if the account was opened after June 1, 1977).
Advantages/Disadvantages: An application combining the financial resources of two people may present
a stronger case to a creditor who is granting a loan or credit card. When two people apply together for
the credit, each is responsible for the debt. This is true even if a divorce decree assigns separate debt
obligations to each spouse. Former spouses who run up bills and don't pay them can hurt their
ex-partner's credit history on jointly held accounts.
Account "Users"
If you open an individual account, you may authorize another person to use it. If you name your spouse
as the authorized user, a creditor who reports the credit history to a credit bureau must report it in your
spouse's name as well as yours (if the account was opened after June 1, 1977). A creditor may report
the credit history in the name of any other authorized user.
Advantages/Disadvantages: User accounts often are opened for convenience. They benefit people who
might not qualify for credit on their own, such as students or homemakers. While these people may use
the account, you, not they, are contractually liable for paying the debt.
CREDIT COUNSELING
There are also a lot of advertisements from credit counseling companies, that offer to consolidate your
debt for you, and all you have to do is make one lower monthly payment to them. While this sounds very
enticing because it relieves the stress of having to worry about making many different bills out, and after
all you could lump them into one lower payment, there are concerns with this type of assistance.
The problem with this is that although you may make your "consolidated" payment to them every month
on time, there is no guarantee that they in turn forward the payment to all of your creditors on time. The
result could be late pays reflected on your credit report.
The single most negative reason for you to engage in credit counseling is that the debt could be reflected
on your credit report as such. When it comes to securing financing for a home mortgage loan, this would
be viewed negatively not positively from an underwriting standpoint of obtaining an approval from a
lender.
How Do I Correct Errors?
Send a copy of your credit report to all three agencies along with a detailed letter, pointing out each
"trade line" (debt)your questioning. If you have proof of payment, or proof of timely payment, include a
copy(save your original receipt) of the proof, if it is a joint account make sure you include both Social
Security numbers, and request that they delete the adverse rating/reporting for the "tradeline" in
question. Always send by certified mail, since that will be your record that the credit agency has received
your dispute.
The credit agencies have 30 days to respond to your dispute and they must give you the written results.
If the investigation does not resolve your dispute, have the credit bureau include your version of the
dispute in your file and in future reports.
If the reporting agency cannot verify a disputed entry, they must delete it. If the information is
incomplete, they must complete it. For example, if you were temporarily delinquent on an account, and
then brought it current and the bureau's report does not reflect that, they must correct your record. Also,
if your file should show someone else's account(this sometimes happens with a "Junior-Senior"
relationship or with common names) they agency must delete it.
CONSUMER RIGHTS
A good credit rating is very important. Businesses inspect your credit history when they evaluate your
applications for credit, insurance, employment, mortgages and leases. Based on your credit payment
history, businesses may choose to grant or deny credit, provided you receive fair and equal treatment.
Sometimes, things happen that can cause credit problems: a temporary loss of income, an illness, even a
computer error. Solving credit problems may take time and patience, but it doesn't have to be an ordeal.
The Federal Trade Commission (FTC) enforces credit laws that protect your right to obtain, use, and
maintain credit. These laws do not guarantee that everyone will receive credit. Instead, the credit laws
protect your rights by requiring businesses to give all consumers a fair and equal opportunity to
receive credit and to resolve disputes over credit errors. This document explains your rights under these
laws and offers practical tips to help you solve credit problems.
CO-SIGNING A LOAN
If a relative or friend asks you to co-sign a loan, make sure you understand what co-signing involves.
You are being asked to guarantee the debt, so think carefully before you do:
1. If the borrower does not pay the debt, you will have to, so make sure you
want to accept the responsibility.
2. You may have to pay up to the full amount of the debt if the borrower does not pay and you may also
have to pay late fees or collection costs.
3. When you take the responsibility of co-signing for someone, your credit report will be affected if the
borrower does not pay on time or at all. The co-signed loan or credit account will be reported under your
social security number, showing: on-time pay, late pay, collections, etc., whatever the status
is of the borrower's repayment or non repayment ability.
Individual Account
Your income, assets, and credit history are considered by the creditor. Whether you are married or single,
you alone are responsible for paying off the debt. The account will appear on your credit report, and may
appear on the credit report of any "authorized" user. However, if you live in a community property state,
you and your spouse may be responsible for debts incurred during the marriage, and the individual debts
of one spouse may appear on the credit report of the other.
Advantages/Disadvantages: If you're not employed outside the home, it may be difficult to demonstrate a
strong financial picture without your spouse's income. If you open an account in your name and are
responsible, no one can negatively affect your credit record.
Joint Account
Your and your spouse's income, financial assets and credit history are considerations for a joint account.
No matter who handles the household bills, you and your spouse are responsible for seeing that debts
are paid. A creditor who reports the credit history of a joint account to credit bureaus must report
it in both names (if the account was opened after June 1, 1977).
Advantages/Disadvantages: An application combining the financial resources of two people may present
a stronger case to a creditor who is granting a loan or credit card. When two people apply together for
the credit, each is responsible for the debt. This is true even if a divorce decree assigns separate debt
obligations to each spouse. Former spouses who run up bills and don't pay them can hurt their
ex-partner's credit history on jointly held accounts.
Account "Users"
If you open an individual account, you may authorize another person to use it. If you name your spouse
as the authorized user, a creditor who reports the credit history to a credit bureau must report it in your
spouse's name as well as yours (if the account was opened after June 1, 1977). A creditor may report
the credit history in the name of any other authorized user.
Advantages/Disadvantages: User accounts often are opened for convenience. They benefit people who
might not qualify for credit on their own, such as students or homemakers. While these people may use
the account, you, not they, are contractually liable for paying the debt.
CREDIT COUNSELING
There are also a lot of advertisements from credit counseling companies, that offer to consolidate your
debt for you, and all you have to do is make one lower monthly payment to them. While this sounds very
enticing because it relieves the stress of having to worry about making many different bills out, and after
all you could lump them into one lower payment, there are concerns with this type of assistance.
The problem with this is that although you may make your "consolidated" payment to them every month
on time, there is no guarantee that they in turn forward the payment to all of your creditors on time. The
result could be late pays reflected on your credit report.
The single most negative reason for you to engage in credit counseling is that the debt could be reflected
on your credit report as such. When it comes to securing financing for a home mortgage loan, this would
be viewed negatively not positively from an underwriting standpoint of obtaining an approval from a
lender.
A missed keystroke by a clerk, can assign a delinquent account to
the wrong file.
Corrected information submitted by an individual can be misrouted
or entered erroneously. For whatever reason we must be vigilant
about the accuracy of our credit reports. We need to know what
goes into them, how to read them, how they are used and how to
challenge or correct errors when it happens.
the wrong file.
Corrected information submitted by an individual can be misrouted
or entered erroneously. For whatever reason we must be vigilant
about the accuracy of our credit reports. We need to know what
goes into them, how to read them, how they are used and how to
challenge or correct errors when it happens.
Chicago Illinois Home Mortgage Lender