You just discovered errors in one or more of your credit reports, or even worse, accurate references to late payments or other debt-related issues. Take a few deep breaths and try to stay calm, because the errors can be fixed. It's possible that some of the negative items can be eliminated, too--and without help from companies that promise to repair your credit.

Disputing Errors on Your Credit Report

1. Make a copy of your credit report and circle every item you believe is incorrect.

2. Write a letter to the reporting agency (the address will be printed on your credit report).

3. Explain each dispute and request an investigation to resolve the issues.

4. If you have supporting paperwork, send it along, coding pages to match dispute paragraphs. Do not send your originals.

5. Send all materials by certified mail, return receipt requested, so that you can prove the packet was received.

6. Send a similar letter of dispute to the creditor whose reports you disagree with. Most billing statements include a special mailing address for disputes.

7. Your dispute might involve personal information, such as your place of employment or your current address. A letter from your employer should solve the first issue. A copy of your driver's license or a utility bill in your name should verify your address.

The reporting agency will initiate an investigation, contacting your creditors to verify the accuracy of the information. If the creditor cannot verify that the entry is correct, it must be removed. When the investigation is complete, the agency must send you a free copy of your report if changes were made.

If the investigation uncovers an error, you have the right to ask that a corrected version of your credit report be sent to everyone who received the report during the past six months.

Online Disputes

You can initiate an investigation from your online credit report. It's an intuitive process--just follow the links and check the disputed items as directed. There isn't a place for remarks, you'll simply check a multiple-choice reason for each dispute. If you must be more specific, submit by mail instead.

When Changes Aren't Made

If the agency verifies that the information is accurate, it must provide you with a written notice that includes the name, address, and phone number of the provider. If you still disagree, you can initiate another investigation.

If your attempts to correct an entry are unsuccessful, you can ask the reporting agency to insert a 100-character explanation that gives your side of the story.

Negative Items that Are Accurate

Most information can be reported for seven years. Bankruptcies can be reported for ten years. So once it's there, a negative items stick around for a bit. If an account that was previously past due has been brought current, and has been either paid off or kept current for at least a year, the creditor might agree to delete the references to past due dates. Write a letter requesting that action. There's no guarantee, but chances are good that they will remove the negative entry.

Another tactic is to dispute a negative item even if you believe it is accurate. You'll have to follow your conscience on that one! Need help with letter formats?