Credit report errors are more common than many people realize, and they can lead to higher interest rates or even denied applications. Fortunately, you have the legal right to dispute inaccurate information, and the process is free.
Common Types of Errors
- Accounts that belong to someone else
- Payments marked late when they were on time
- Debts that were paid or discharged but still show a balance
- Duplicate collection accounts
- Outdated negative items that should have aged off
- Incorrect credit limits or account statuses
Step 1: Get Your Reports
Download your reports from all three bureaus through AnnualCreditReport.com. An error may appear on one report and not the others, so compare them carefully.
Step 2: Gather Evidence
Collect documents that support your claim, such as bank statements, payment confirmations, letters from creditors, or court records. Make copies and keep the originals.
Step 3: Contact the Credit Bureau
You can file a dispute online, by mail or by phone. Mail gives you a paper trail, and sending it by certified mail with a return receipt is a good idea. In your letter, identify each error clearly, explain why it is wrong, and include copies of your evidence. Ask for the item to be corrected or removed.
Step 4: Contact the Creditor Too
You can also dispute directly with the lender or collector that reported the information. If they agree it is wrong, they must notify the bureaus to update the record.
Step 5: Wait for the Investigation
Bureaus generally have about 30 days to investigate, which may extend to 45 days in some situations. They will contact the data furnisher and send you the results in writing.
Step 6: Review the Outcome
If the information is corrected, request an updated report to confirm. If the bureau sides against you, you can add a short statement of dispute to your file, submit more evidence, or file a complaint with the Consumer Financial Protection Bureau.
Tips for Success
- Be specific and factual, and avoid long emotional letters.
- Dispute one item at a time if it is complicated.
- Keep a log of dates, names and reference numbers.
- Only dispute items that are truly inaccurate. Disputing accurate information rarely works and wastes time.
Correcting errors is one of the fastest and most cost-effective ways to protect your credit. You do not need to pay a company to do it for you.