How Do I Find the Errors On My Credit File?

Reader Question: How do I find the errors on my credit file? And can you have things removed from your file through loopholes in the way the company reported it?

For starters, you need to request your credit file / report from all three of the credit reporting companies. Then you need to read through each section with an eye out for inaccurate information.

In the personal data section, you're just making sure it has the right name, Social Security Number, etc. In the "Public Records" section, you want to make sure there aren't any legal judgments showing up that aren't yours. This includes bankruptcy filings, liens, foreclosures, etc. In the "Account History" section, you're looking for (A) credit accounts that aren't yours and (B) any late payments or debt collections that have been reported incorrectly. You also want to ensure there aren't any negative entries that are more than seven years old (or ten years for bankruptcy filings).

If you want a section-by-section guide to credit reports, with more detail than this blog post, check out this guide to reading your reports.

As for your second question, there really aren't any "loopholes" you should be concerned with. Despite the data errors and other mistakes that can occur, the credit reporting process is fairly straightforward. It's also regulated by the FTC, through the Fair Credit Reporting Act. If you find a negative entry on your credit file that's there for legitimate reasons (i.e., you truly neglected your debts, filed bankruptcy, or whatever), then there's nothing you can do to remove it. You just have to wait until the item "expires" at the 7- or 10-year mark.

However, if you find something on your credit file that should not be there (an obvious mistake), there's plenty you can do about it. You can dispute such items through the website of the company who produced the report -- TransUnion, Experian or Equifax. No need to look for loopholes.