Making sure that the information contained in your credit report is accurate can be just as important as paying your bills on time. When inaccurate information shows up on your credit report it is your responsibility to see that the credit dispute is resolved. Some people get so intimidated by creditors and debt collection agencies that they just accept whatever is on their credit report, but this isn't necessary. It is possible to have erroneous information removed form your credit report. You just have to know how to go about it.

If you notice any erroneous information on your credit report, initiate a credit dispute by first contacting the credit reporting agency and the creditor in writing. Explain why you feel that the information contained in your credit report is incorrect, and if possible, provide hard-copy proof. Be sure to keep copies of everything. If possible, avoid sending originally, as they may be lost. Also, sending correspondence by certified mail with return receipt, will leave you with proof that your paperwork was received in the mail.

Different jurisdictions have different laws covering credit disputes. According to US law, the organization that has provided the disputed information to the credit reporting agency must investigate the claim, then report their findings to the credit reporting agency. This usually takes about 30 days or less. If the information referenced in the credit dispute is found to be inaccurate, the information provider must notify all credit reporting agencies nationwide of the mistake. The information is expected to be removed from your credit report in a reasonable amount of time, usually about 30 days or less. If the information is found to be accurate, you may add a 100 word statement to your credit report stating why you feel it is inaccurate. Future creditors will not be required to take your statement into consideration however.

There are some companies that claim that they can get any information removed from your credit report, whether it is accurate or not. While you may want to take your chances, typically the only way to remove accurate negative information on your credit report is by either paying the debt, declaring bankruptcy, or waiting seven to ten years.

While resolving a credit dispute is possible, repairing broken credit is never an overnight achievement. Repairing your credit rating takes time, but it certainly helps to make sure all of the information contained in your credit report is fair and accurate. The US government has many different agencies that assists citizens wanting to repair their credit rating. If you are one of those people, contacting the Federal Trade Commission (FTC) can help you determine what to do next.