Studies show that most credit reports have inaccuracies that may affect your credit score. It's your right to demand the most accurate credit reports possible, and to benefit from the improved credit score which results from correction. If your credit reports are not repaired, any misinformation on your account can cause you to pay higher interest rates on everything from credit cards to home mortgage or vehicle loans.

The Federal Fair Credit Reporting Act (FCRA) mandates that the credit bureaus (CRA) must investigate and verify, upon request, the completeness and accuracy of certain information on your credit reports. The FCRA therefore provides consumers the legal right to dispute inaccurate, erroneous,  or obsolete information on their credit reports.

The credit bureaus are given 30 days (45 if the dispute is based on "free" credit reports) to investigate the credit dispute. If they find that they have been reporting inaccurate information, or they are unable to verify the information, the bureaus must either correct or remove the item in question. They must then supply the consumer with updated account information (usually new copies of your reports) to reflect the changes.

Reasons the Reporting Agencies use to factor credit scores

• Serious delinquency.

• Serious delinquency, and public record or collection field.

• Time since delinquency is too recent or unknown.

• Level of delinquency on accounts is too high.

• Number of accounts with delinquency is too high.

• Amount owed too high on accounts.

• Ratio of balances to credit limits on revolving accounts is too high.

• Length of time accounts have been established is too short.

• Too many accounts with balances.
   

Understanding Credit Reports
 

EQUIFAX - BEACON Score Codes

00039 - serious delinquency
00038 - serious delinquency, and derogatory public record or collection filed
00034 - amount owed on delinquent accounts
00033 - proportion of loan balances to loan amounts is too high
00032 - lack of recent information loan information
00030 - time since most recent account opening is too short
00024 - no recent revolving balances
00023 - number of bank or national revolving accounts with balances
00020 - length of time since derogatory public record or collection is too short
00019 - too few accounts currently paid as agreed
00018 - number of accounts with delinquency
00016 - lack of recent revolving account information
00015 - lack of recent bank revolving information
00014 - length of time accounts have been established
00013 - time since delinquency is too recent or unknown
00012 - length of time revolving accounts have been established
00011 - amount owed on revolving account is too high
00010 - proportion of balances to credit limits is too high on bank revolving or other revolving accounts
00009 - too many accounts recently opened
00008 - too many inquiries last 12 months
00006 - too many consumer finance company accounts
00005 - too many accounts with balances
00002 - level of delinquency on accounts
00001 - amount owed on accounts is too high
O - beacon not available, no recently reported account information
FA - number of inquiries adversely affected the score, but not significantly

TRANSUNION - EMPIRICA Score Codes

040 - derogatory public record or collection filed
039 - serious delinquency
038 - serious delinquency, and public record or collection filed
030 - time since most recent account opening is too short
029 - no recent bankcard balances
028 - number of established accounts
027 - too few accounts currently paid as agreed
024 - no recent revolving balances
021 - amount past due on accounts
020 - length of time since derogatory public record or collection is too short
018 - number of accounts with delinquency
017 - no recent non-mortgage balance information
016 - lack of recent revolving account information
015 - lack of recent bank revolving information
014 - length of time accounts have been established
013 - time since delinquency is too recent or unknown
012 - length of time revolving accounts have been established
010 - proportion of balances to credit limits is too high on bank revolving or other revolving accounts
009 - too many accounts recently opened
008 - too many inquiries last 12 months
006 - too many consumer finance company accounts
005 - too many accounts with balances
003 - proportion of loan balances to loan amounts is too high
002 - level of delinquency on accounts
001 - amount owed on accounts too high
- file not scored because subject does not have sufficient credit
FA - in addition to the factors listed above, the number of inquiries on the consumer's credit file has adversely affected the credit score

EXPERIAN - FAIR ISAAC Score Codes

40 - derogatory public record or collection field
39 - serious delinquency
38 - serious delinquency and public record or collection filed
33 - proportion of current loan balance to original loan amount
32 - no recent installment loan information
24 - lack of recently reported balances on revolving/open accounts
21 - amount past due to accounts
20 - length of time since legal item filed or collection item reported
18 - number of accounts delinquent
16 - insufficient or lack of revolving account information
15 - insufficient or lack of bank revolving account information
14 - length of time accounts have been established
13 - length of time (or unknown time) since account delinquent
12 - length of revolving account history
10 - proportion of balance to high credit on bank revolving or all revolving accounts
09 - number of accounts opened within the last 12 months
08 - number of recent inquiries
06 - number of finance company accounts
05 - number of accounts with balances
02 - delinquency reported on accounts
01 - current balances on accounts
9002 - the profile report does not contain any tradeline which satisfies both of the following: status date within the last six (6) months or a balance within the last six (6) months. Does not contain disputed information
- risk score not calculated due to lack of credit history