Realistically, resolving errors in your credit file is a revolving process that can be considered tedious and even frustrating. You will have to deal with the inaccessibility of the three major CRAs, the sometimes unworkable attitudes of your past or current creditors’ billing or collection departments, and if you have mismanaged your credit accounts, the disagreeable personalities and veiled threats of collection agencies (should you have to work towards resolving errors or debts with them, please see the article “Collection Accounts”).

These elements can lead people to simply paying a “Credit Repair” agency to do the dirty work of credit report error resolution. However, it is possible for you to manage the credit report resolution process personally, and learn more about your credit management behavior or at least credit reporting in the process, so you can make smarter decisions in the future. The Federal Trade Commission also suggests that the services of such agencies may be an unnecessary expense, as they are unable to perform credit repair operations a consumer can do on their own, and sometimes fail to deliver results altogether.

Before you begin, keep in mind that this process is designed to resolve errors in your credit file. Depending whether you have valid debts with past and current creditor or collection agencies, you will need to find ways of resolving the debts, not just how they are reported. You may need to consider debt management options, and redeveloping credit prior to credit report error resolution (see “Starting Over: How to Redevelop Credit” for more information).

But if there are actual reported errors in your credit file, it is best to attack them, and follow through with the entire process. Overall, you must:

• Document ALL contacts with CRAs, creditors and collection agencies---whether contacts, negotiations, or written correspondence
• Communicate as much as possible in letter or written format to ensure all interactions are documented
• Be prepared to follow-up with CRAs, creditors and collection agencies one, two, or even three times to get results
• Even if successful in reaching resolution for credit file errors, you will need to monitor your credit report even after receiving written acknowledgement that errors will be changed, whether from a CRA, creditor or collection agency
• Follow the resolution process for every error, and for each file in which it is reported

Undeterred? Please see “Steps to Credit Report Error Resolution Process” to get started.




References:

Federal Trade Commission. Facts for Consumers: Building a Better Credit Report.
iGlobalFinancial.com. 2004 Consumer Credit Templates.