How to Dispute a Credit Report Error

If something on your credit report is wrong, dispute it directly with the credit bureau that shows it, and ideally with the company that reported it too. Disputing is free, the bureau generally has 30 days to investigate, and you don’t need to pay a credit repair company to do it for you.

Find the exact error

Start by getting your reports from all three bureaus (Equifax, Experian and TransUnion). They’re free every week at AnnualCreditReport.com. Errors often appear on one report but not the others, because lenders don’t always report to all three.

Go through each account and look for:

• accounts you never opened
• late payments you’re sure were on time
• a balance or credit limit that’s wrong
• the same debt listed twice, for example by the original lender and a collector both showing a balance
• a closed account showing as open, or the reverse
• an old debt with a delinquency date that’s been moved forward
• the wrong name, address, or Social Security number

For each problem, write down what the report says, what’s actually true, and which document proves it, such as a bank statement, a payoff letter, or an email from the lender.

If you find accounts you didn’t open, that’s likely identity theft rather than a simple error. Go to IdentityTheft.gov first; it creates an identity theft report that makes the disputes easier. Then freeze your credit (see Credit Freeze vs. Fraud Alert).

File the dispute

Each bureau has an online dispute form, and you can also dispute by mail. Online is faster, but mail gives you a clear paper trail. Whichever you choose:

• identify each item clearly, using the account name and the last few digits of the account number
• explain briefly why it’s wrong and what the correct information is
• attach copies, not originals, of your proof
• save confirmation numbers and screenshots of everything you upload

The FTC has free sample dispute letters for both bureaus and lenders. Disputing with the lender (the “furnisher”) as well as the bureau is a good idea; once notified, the lender has to investigate too, and if it finds an error it has to tell all three bureaus.

What happens next

The bureau forwards your evidence to the lender and generally has 30 days to finish. You’ll get the results in writing, plus a free updated report if anything changed. If the item was corrected, you can ask the bureau to notify anyone who pulled your report in the past six months.

Read the result carefully. A response that just says “verified” means the lender confirmed its own records. It doesn’t mean anyone looked closely at your proof.

If it isn’t fixed

• Send a second dispute that points directly to the document the first one ignored.
• Go to the lender directly in writing, with the same evidence.
• Add a statement of dispute to your file, so anyone who pulls your report sees your side. It won’t change your score, but a human reviewer may read it.
• File a complaint with the CFPB or your state attorney general if a bureau or lender won’t correct an obvious error.
• Talk to a consumer attorney if the error is costing you a loan or a job. The Fair Credit Reporting Act lets you sue in some cases, and because a winning consumer can recover attorney’s fees, some lawyers take these cases without charging upfront.

Keep your expectations realistic

Disputes are for information that’s wrong. An accurate late payment is unwelcome, but it isn’t an error, and a blanket dispute of everything negative usually goes nowhere. After a correction, your score may rise, but there’s no guaranteed number. If the problem is a collection account, How to Respond to a Debt Validation Notice covers what to do with the collector, and Why Your Credit Scores Differ Across Apps and Lenders explains why a fix may show up in one score before another.

Sources

• FTC: Disputing errors on your credit reports
• Experian: Dispute credit report information
• FTC: IdentityTheft.gov

This article is for educational purposes and is not financial advice.