How to Fix Your Credit Reports

Before you apply for a mortgage or car loan, check your credit files for errors that could derail your plans.

- RIVAN STINSON

INACCURATE INFORMATION on your credit reports could hurt your credit score, and errors are not uncommon. Complaints to the Consumer Financial Protection Bureau about the major credit reporting agencies— Equifax, Experian and TransUnion—skyrocketed in 2020, and the majority concerned incorrect information, according to a report from the U.S. Public Interest Research Group.

Under the Fair Credit Reporting Act, you have a right to dispute information in your credit reports that you believe is inaccurate. Unfortunately, however, you can’t just send a complaint to the CFPB and watch the mistakes magically disappear. You need to take specific steps to get the credit agencies to scrub errors.

You can download or print your credit reports from each of the three bureaus for free at www .annualcreditreport.com on a weekly basis until April 2022. In general, the credit reporting agencies receive information about you from your creditors on a monthly basis. And while your credit reports should look similar, there will be some differences, because some lenders don’t report to all three agencies. For example, if you have a credit line with Affirm, which offers payment plans for online purchases, it may show up on your Experian report and not your Equifax or Trans- Union report. When you’re checking each report, make sure your address is correct and that information about lenders and your payment history is accurate for all of your accounts. For example, each entry should show when you’ve paid your bills and whether the payments were on time.