Credit scores are very important to Americans, and when there is a problem or error on your credit report, it can affect your credit score! Here is a breakdown of how incorrect credit report information can affect your credit score. Usually, when you correct an error on your credit report, your credit score will improve. However, in some cases, correcting or updating your credit information may still not improve your score. Here’s the answer to a few frequently asked questions!
Will my score improve when I close my credit card account?
Many people think that closing a credit card account will improve your credit score, but that’s not true! This is because closing an account does not remove information from your credit report, nor does it change your payment history or credit score. So removing negative information from your credit report may not change your credit score, and may even increase your negative information!
Will changing personal information on my credit report affect my credit score?
No! Because credit scores are only calculated for credit-related information on your credit report. So when you change your personal information (address, SSN, employer, date of birth, etc.), the credit information on your credit report will not be affected and your credit score will not change. Credit scores only take into account credit account, collection and public record information; in addition, it usually takes the agencies 30-45 days to respond to your questions.
Ways to Fix Credit Report Errors
If you find an error on your credit report, to ensure that the error can be corrected as soon as possible, contact the credit bureaus and the organization that provided the information to them. There are currently three major credit bureaus that will provide you with your credit report: Equifax, Experian, and TransUnion, all three of which now accept online question submissions, but Experian now only accepts Online submissions only. Next, we’ll show you how to submit a question to the credit bureaus for amendment.
How to correct incorrect information
If you find an error in a message on your credit report, you can first request a correction by filing a dispute with the credit bureau. Remember, you need to clearly identify what is wrong with your credit report, explain why it is wrong, and finally ask the agency to correct or remove the error.
The credit bureau must investigate the items you have questions about and will usually respond within 30 days. You can send a letter by mail, by certified mail, and request a return receipt so that you can prove that the bureau actually received your letter. Also, please keep a copy of your objection request letter and attachments. Once the bureau receives a positive response, you will be able to receive a free credit report directly from the bureau to verify the updated information.
What if I am not satisfied with the results of the investigation?
If the investigation does not resolve your issue, you may place your comments in a dispute request letter or you may request that the reporting agency send your dispute request letter to all banks or institutions that have requested your report within the past six months at no additional charge as long as the request is made within thirty days of the denial of the dispute request letter.
Finally, if the investigation does not produce what you believe to be the correct result and the incorrect information in your credit report will cause you credit score damage, then you may consider hiring an attorney as a last resort to resolve your problem.