How to Dispute Errors on Your Credit ReportExpert Credit Insights

According to a Federal Trade Commission study, one in five consumers has an error on at least one of their credit reports. These errors can range from minor inaccuracies to serious mistakes that significantly lower your credit score and affect your ability to obtain loans, credit cards, or even employment. Fortunately, the Fair Credit Reporting Act (FCRA) gives you the right to dispute inaccurate information and have it corrected or removed from your credit report. This guide walks you through the process of identifying and successfully disputing credit report errors.

Why Checking Your Credit Reports Regularly Is Important

Your credit reports contain the information used to calculate your credit scores, which lenders use to assess your creditworthiness. Errors in these reports can lead to lower scores, higher interest rates, and even loan denials. Regular monitoring allows you to catch and correct mistakes before they cause serious problems. It also helps you detect potential identity theft early.

By law, you're entitled to one free copy of your credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—every 12 months through AnnualCreditReport.com. During the COVID-19 pandemic, this was expanded to allow weekly free access, and as of writing, free weekly access has been extended through December 2023.

Common Types of Credit Report Errors

• Identity errors: Incorrect name, address, or phone number; accounts belonging to another person with a similar name; duplicate accounts
• Account status errors: Closed accounts reported as open; accounts incorrectly reported as late or delinquent; incorrect date of last payment or date opened/closed
• Balance errors: Incorrect current balance or credit limit
• Data management errors: The same debt listed multiple times; reinsertion of corrected information that was previously removed
• Outdated information: Negative information that should have aged off your report (most negative information should be removed after 7 years, with bankruptcies remaining for 10 years)

Step-by-Step Guide to Disputing Credit Report Errors

Step 1: Obtain and Review Your Credit Reports

Get your free credit reports from all three major bureaus through AnnualCreditReport.com. Review each report carefully, looking for inaccuracies in your personal information, account details, payment history, and public records. Mark or highlight any errors you find, and gather supporting documentation that proves the information is incorrect.

Step 2: Determine Where to Send Your Dispute

You can dispute errors directly with the credit bureau reporting the inaccurate information, with the furnisher (the company that provided the information to the credit bureau), or both. In most cases, it's best to start with the credit bureau. If the same error appears on multiple reports, you'll need to file separate disputes with each bureau.

While online disputes are convenient, sending your dispute by certified mail with return receipt requested creates a paper trail and may be more effective for complex issues.

Step 3: Prepare Your Dispute Letter

Write a clear, concise dispute letter that includes your complete name and address, clearly identifies each item you're disputing, explains why the information is inaccurate, and requests that it be corrected or removed. The Consumer Financial Protection Bureau (CFPB) offers sample dispute letters on their website that you can use as templates.

Include copies (not originals) of any documents that support your position, such as payment records, account statements, or correspondence from creditors. Also include a copy of your credit report with the disputed items clearly marked.

Step 4: Submit Your Dispute

You can submit your dispute online, by mail, or by phone. Each credit bureau has its own process:

• Equifax: equifax.com/personal/credit-report-services/credit-dispute/
• Experian: experian.com/disputes/main.html
• TransUnion: transunion.com/credit-disputes/dispute-your-credit

If sending by mail, use certified mail with return receipt requested to document when the bureau received your dispute. Keep copies of all correspondence.

Step 5: Wait for the Investigation Results

By law, credit bureaus must investigate your dispute within 30 days (45 days in some circumstances), forward all relevant information to the furnisher, and provide you with written results of the investigation. If the information provider confirms the accuracy of the disputed information, you have the right to add a brief statement to your credit report explaining your side of the story.

Step 6: Follow Up as Needed

If your dispute results in a change to your credit report, the credit bureau must provide you with a free copy of your updated report. Review it carefully to ensure all corrections have been made. The credit bureau must also send notices of corrections to anyone who received your credit report in the past six months (or two years for employment purposes).

If your dispute is rejected and you still believe the information is inaccurate, you can:

• Contact the furnisher directly to dispute the information
• File a new dispute with additional supporting documentation
• Add a consumer statement to your credit report explaining the dispute
• File a complaint with the CFPB or your state's attorney general
• Consult with a consumer law attorney who specializes in FCRA cases

Tips for Successful Disputes

Be Specific and Factual

Clearly identify each error with specific account numbers, dates, and amounts. Explain exactly what is incorrect and why. Stick to the facts and avoid emotional language or complaints about general credit reporting practices.

Provide Strong Documentation

The strength of your supporting documentation can make or break your dispute. Include as much concrete evidence as possible, such as account statements, canceled checks, correspondence from creditors, or court documents.

Keep Records and Follow Up

Maintain a detailed record of all communications, including dates, names of representatives you spoke with, and summaries of conversations. Set reminders to follow up if you don't receive a response within the required timeframe.

Successfully disputing errors on your credit report can significantly improve your credit score and financial options. While the process requires attention to detail and persistence, the potential benefits make it well worth the effort. Remember that disputing legitimate errors is your right under federal law, and credit bureaus are obligated to address your concerns in a timely and fair manner.