Individual credit reports contain payment history and credit accounts along with some personal information such as full name, past and present residences, contact numbers, employment history, etc.

Lenders, insurers, potential employers and even landlords use credit reports to check a person’s background and credit worthiness.

A single mistake in one of your personal details or credit accounts could mean trouble. Under the Fair Credit Reporting Act, consumers have the right to protect themselves against unfair credit reporting and debt collection practices. Thus, if your personal credit report contain errors, it is your right to report it to the credit reporting agencies and ask for corrections.

How do you go about disputing credit report errors? Here are the correct steps:

Obtain a copy of your credit report at least twice a year.

Checking your credit report every six months is your best defense against erroneous reporting and fraudulent transactions. In case of incorrect charges in your account, you can file for a dispute immediately to update your credit report.

Claim your free credit report once each year.

Visit www.annualcreditreport.com to avail of your annual free credit report from three major credit reporting agencies – Equifax, Experian, and TransUnion. If you are currently unemployed, you may also request for a free copy of your credit report. Who else are eligible to request for a free credit report? Consumers who have been denied by a creditor and suspect that they may have been a victim of fraud or ID theft.

You may also call the toll free number at 877-322-8228 or fill out the Annual Credit Report Request Form and send it via post mail at this address: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

Notify the credit bureau.

Inform the credit bureau that issued your report about the errors you have found. BE sure to follow up your call with a dispute letter sent via registered post mail. In your letter, point out the items that you are disputing and enclose a copy of your credit report with the items in dispute clearly marked.

Notify the creditor.

If you’re disputing about incorrect charges, you should also contact the creditor involved and inform them about the errors. Advice your creditor that you have already forwarded a dispute letter to the credit bureau. Follow up your call with a letter.

Waiting period.

It will usually take 30 days for the credit bureau to complete its investigation. If your dispute is valid, the credit bureau will notify all the other major credit bureaus to update their reports. Afterwards, you should receive an updated copy of your credit report for free.

What if your dispute was found to be invalid? You can request the credit reporting bureaus to include a copy of your dispute letter whenever a creditor inquires about your credit report. However, this service isn’t free.