Disputing Errors on Your Credit Report

It is not uncommon for an error to be present on your credit report. Yet, even a tiny mistake – such as a missing payment – can lead to a costly outcome for many people. The better option is to stay vigilant and monitor your credit reports continuously.

Why Reviewing Your Report is Important

Reviewing your credit report is a necessary step in protecting your financial future. Most lenders use an automated process to report payments, and debt, which means a computer handles the communications. Yet, mistakes happen when data is not entered correctly.

In addition, there is always the risk that information will be reported about someone else on your credit report. That can happen when someone has used your data to obtain credit or the wrong Social Security number was used. You need to know that inaccurate information is present on your credit report so that it is not hurting your score and your ability to obtain credit.

Common Credit Report Errors

Any information that is not accurate should be reported to the credit bureaus. Some examples of common credit report errors include:

  • Inaccurate names, addresses, and employer information about you (misspellings are common, but wrong last names should not be ignored).
  • Accounts that are not your own, including active and open or closed accounts.
  • Information about payments on your account that is not accurate, such as a late or missing payment that you can prove was made on time.
  • Inaccurate information about tax liens, disputes, bankruptcies, or other data.
  • Inaccurate information about those accounts' credit limits and high balances.

This type of data can be very harmful to your credit report.

Step-by-Step Guide to Dispute Errors

There are several ways to dispute information on your credit report. You can go to the credit bureau's website and do so. Or you can mail a dispute letter to the credit bureaus to report this information.

Here is the contact information you need:

Transunion:

Equifax:

Experian:

Gathering Information for Your Dispute

To report any dispute, you need to gather information. Your credit report will include much of the information you need, but then use things like your bank statement or online account with the credit card lender to prove the information is inaccurate.

If the dispute is clearly due to someone else using your identification, you must take more aggressive measures to protect your identity. To do that, visit the Federal Trade Commission's website and follow the steps to protect your identity.

Overview of the Dispute Process

Here's what you can expect from this process:

  • Gather the information you have to prove the information is inaccurate or ask the credit bureau to dispute the claim with the lender. You can create a letter to send them or use the forms provided.
  • Mail that to the right place, or file it online.
  • The credit bureaus will have 30 days to take action and investigate this information. They will verify the lender's information and make any necessary changes. The results are reported to you within five business days of the investigation ending.
  • Recheck your credit report in 45 days to verify the information is updated.
  • If the bureau determines your claim is frivolous, meaning they cannot back up your claims, you can submit a new claim with updated materials to prove the data.

What to Do if the Credit Bureau Doesn't Correct the Error

There may be situations in which the credit bureau does not change the data on your credit report. This can happen for many reasons, but it often happens because the credit bureau does not have enough information to verify that what you are claiming is true.

You can request that the credit bureaus document that the information on the report is inaccurate, even if they state that it is. In addition to this, you can file a secondary dispute as a way to provide more material to verify your claim.

Legal Options Available

There are some situations in which you may find yourself facing a claim on your credit report that is not accurate, and you do not have any ability to dispute it again. This may happen, for example, if someone else uses your information to open an account in your name, but you cannot prove that it was not you.

You have some additional legal options. For example, you can complain to the state's consumer protection agency. You can also contact your congressional representative or senator for more information. Be sure to loop the Federal Trade Commission in if there are any risks of identity theft. It is possible to take legal action against the creditor or the credit reporting agency if the information is incorrect.

The Fair Credit Reporting Act gives you the legal right to do so. While complicated, you may need to take steps to protect your financial future.

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Establishing Credit | Understanding Your Credit Report