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How To Dispute Credit Report Errors
By Jamela Adam MONEY RESEARCH COLLECTIVE
Nobody’s perfect — not even the people who compile our credit reports. Even if you diligently monitor your credit files, errors can still slip through. According to a recent Consumer Reports study, more than one-third of consumers who participated in an investigation found errors in their credit reports when they checked. Since negative items can lower your credit score, it’s natural to panic when you spot these inaccuracies. But don’t worry – there are steps you can take to fix them. Read on as we walk you through how to dispute credit report errors.
What is an error on a credit report?
An error on a credit report is any inaccurate or incomplete information that appears in your file. These errors typically happen when the creditor makes a mistake in their records and sends the wrong information to the credit reporting agencies. Credit bureaus can also make mistakes, such as accidentally merging your data with someone else’s.
Though errors on credit reports are common, you shouldn’t ignore them. Even something seemingly innocuous as a misspelled name can lead to denial of credit. So be sure to routinely check your credit reports to catch mistakes before they cause a problem.
How to identify an error on your credit reports?
To find mistakes, start by getting a copy of your credit reports. Under the Fair Credit Reporting Act, you’re entitled to one free copy of your credit report from each of the three major credit bureaus (Experian, Equifax, and TransUnion) every year. You can request these free credit reports online at annualcreditreport.com. It’s up to you if you want to order them all at once or stagger them throughout the year.
Once you have your reports in hand, take a close look at the information on each one. Some common inaccuracies to look for are identity errors such as name misspellings, balance errors, incorrect credit limits, and account errors such as on-time payments being reported as late.
You could also consider using a credit monitoring service to help you identify errors — especially if you don’t have the time or energy to go through your credit reports with a fine-tooth comb.
Note: Because creditors aren’t obligated by law to send your information to all three credit bureaus, it’s normal to see minor differences between each credit report.
Is it possible to correct errors on a credit report?
Yes, it’s possible to fix the mistakes on a credit report. Once you identify the inaccuracies dragging your credit score down, file a dispute with the credit bureau immediately. Once the credit reporting agency reviews your complaint, they’ll decide whether or not your claim is valid.
Remember that the credit reporting agencies will only remove items from your credit report if they’re inaccurate. If the information is correct, you’re unfortunately stuck with it for at least a few years — depending on the severity of the negative information. Late payments can stain your credit report for up to seven years, and bankruptcies can remain for up to ten years.
How do you dispute an error on your credit report?
Disputing an error on your credit report can seem daunting, but in reality, it’s relatively straightforward. Here are the steps to take:
- Gather supporting materials: Before filing a dispute with the credit bureaus, gather evidence that supports your claim — including bills, statements, proof of identity, or other documentation. This way, the investigators can easily confirm the validity of your complaint.
- Write a dispute letter: If you aren’t sure what to include in the letter, use this sample letter from the Federal Trade Commission (FTC) to help you. Make sure to include your contact information, explain why you’re disputing the negative items, and enclose copies of the documents you gathered in the previous step. You might also want to include a copy of your credit report with the errors highlighted or circled.
- Send the letter to the credit bureaus: Lastly, send your letter by certified mail with “return receipt requested” for proof of delivery. Once the credit bureau receives your dispute, they’ll launch an investigation and notify you of their findings.
Sending a physical letter to the credit bureaus isn’t the only way to dispute errors on your credit report. The credit bureaus also accept disputes online or by phone. Here’s the contact information for each credit reporting agency:
Experian
- Online: File a dispute on Experian’s website.
- Mail: Send your letter to Experian P.O. Box 4500 Allen, TX 75013
- Phone: Call (888) 397-3742
Equifax
- Online: File a dispute on Equifax’s website.
- Mail: Send your letter along with this dispute form to Equifax Information Services LLC P.O. Box 740241 Atlanta, GA 30374.
- Phone: call (866) 349-5191
TransUnion
- Online: File a dispute on TransUnion’s website.
- Mail: Send your letter along with this dispute form to TransUnion Consumer Solutions P.O. Box 2000 Chester, PA 19022-2000
- Phone: Call (833) 395-6941
Apart from disputing the errors with the credit reporting agencies, the FTC also recommends contacting the company that provided the negative information in the first place. The best way to do this is to send a letter to the company’s address listed on the credit report. But if you can’t find it, email or call the company to see if they can provide you with the correct address.
What are the most common errors on a credit report?
- Identity error: When your personal information is mixed up with someone else’s, or when there’s an error in your Social Security number, address, or other identity-related information.
- Account status error: When a closed account is reported as open, or a current account is reported as late or delinquent. Account status errors can also happen if the date of last payment, date opened, or date of first delinquency is incorrect.
- Balance error: When the credit bureau reports the wrong balance or credit limit for one/some of your accounts.
- Duplication error: When an account is listed more than once on a credit report. Duplication errors can create problems because they make it seem like you have more debt than you do.
How to dispute credit report errors FAQs
What happens when you dispute an error on a credit report?
After filing a dispute with the credit bureaus, they'll investigate your claim and get back to you with their findings within 30 days (45 days in some cases.) If they find that the error was indeed a mistake, they'll remove it and update your credit report.
If the error was not a mistake, they'll stop the investigation and let the negative information stay on your credit report. But don't despair. Most negative items will disappear from your credit history within seven to ten years.
If the investigation doesn't resolve your dispute, you have the right to ask the credit bureau to include a statement of the dispute in your credit file to help explain your situation — though there might be a fee for this service. Or, if you have additional information to help prove your case, you can file a dispute again.
And lastly, if you think the credit bureau has violated the Fair Credit Reporting Act during the dispute process, you have the right to file a complaint with the CFPB or even file a lawsuit.
How long do you have to dispute an error on your credit report?
After finding an error on your credit report, you might wonder how long you have to dispute it. Though there's no official time limit for disputes, experts recommend that you act quickly. The sooner you dispute the error, the sooner the credit bureaus can correct the mistake and minimize damage to your credit score. So if you spot an incorrect item, contact the credit bureaus immediately.
What if the creditor does not respond to the dispute?
After you file a dispute, the credit reporting agencies have 30 to 45 days to contact the creditor and verify the disputed item. If the creditor fails to respond, the credit bureau must remove the negative item from your credit report. However, if the creditor later verifies the account information, the credit bureau can reinsert the information into your credit file.
What is the dispute process?
Here's a quick recap of the credit report dispute process:
What does it mean when you see an unknown account on your credit report?
When you spot an unknown account on your credit report, it generally means one of two things:
- Your credit information has been compromised; or
- Your credit file has been accidentally mixed up with someone else's.
In the first case, it's likely that you've fallen victim to identity theft. Contact the credit bureaus immediately to place a credit freeze on your files so fraudsters won't be able to open new accounts in your name. Make sure to also visit IdentityTheft.gov to file a report and get more information on what steps to take next. In the second case, it's usually just a mix-up that can be easily fixed by contacting the credit reporting agencies and filing a dispute.
Summary of our guide to dispute credit report errors
Don’t put off disputing the errors on your credit report. The sooner you start, the less damage those negative items can do to your credit score. And remember, patience is key when it comes to repairing your credit. It may take some time for your credit report to be updated, so wait a few weeks after the dispute to check back in. Don’t forget to continue monitoring your credit report regularly for any new errors that may pop up. And if you don’t have the time or patience to undertake the project on your own, you can always consider utilizing a credit repair company.
