How to Dispute Your Credit Report

Your credit reports play a huge role in your financial life. So it's vital that those reports are accurate. But that's not always the case. Almost half of consumers have errors on their credit reports. Many have debt-related errors that could do serious credit score damage.

Errors that impact your credit score could impair your ability to buy a car, get a mortgage, rent an apartment, or get a job. They could also affect how much you pay in interest. 

That's why you need to check your credit reports regularly. If you find an error in your credit report, take steps to dispute it right away. 

Freedom Debt Relief isn't a Credit Repair Organization and doesn't provide, or offer services or advice to repair, modify, or improve your credit.

What Are Credit Report Errors?

A credit report error is any information on your credit report that isn't correct. These can range from the weird but benign, such as reversing your hyphenated name, to the credit-score crushers like an unpaid account that belongs to someone else. 

Why are there errors on your credit report?

Credit report errors have many origins. Here are some common types of errors you might find on your credit reports:

• Clerical errors. People inputting data are only human—mistakes happen. A misspelled name, incorrectly reported balance, or even a duplicate account could all show up on your reports from simple human error.

• Mistaken identity. If you have a common name, you're especially vulnerable to errors on your credit reports. You may wind up with an account on your credit report that has your name on it—but the account really belongs to someone else. For example, if you're one of the nearly 35,000 Michael Smiths in the U.S., it wouldn't be shocking to find another Michael Smith’s account on your credit report.

• Identity theft. Victims of identity theft are also vulnerable to credit report errors. In fact, such errors could be the very thing that raises a red flag for identity theft. If there are mystery accounts on your credit report or bad debts you’re unaware of, it’s possible the culprits are thieves.

• Old accounts. Negative accounts on your credit report should fall off your reports after seven years (Chapter 7 bankruptcy can last up to 10 years). However, sometimes they mistakenly stick around until you draw attention to the problem.

Which errors can affect your credit?

Some credit report errors could affect your score, such as:

• Identity errors. A misspelled name or other personal information could mean accounts aren't reported correctly.

• Closed accounts reported as open. This can impact your account ages and utilization ratio (how much debt you have versus your available credit).

• Accounts incorrectly listed as late or delinquent. Payment history is the number one factor in your credit score and late accounts could cause serious harm.

• A debt listed more than once. This could also impact your utilization ratio, as well as account age, and‌ payment history if the account isn't current.

• Outdated credit card balance or limit info. A paid-off card showing a balance could increase your utilization and hurt your credit score. Creditors typically report your updated balances once per billing cycle.

Some minor issues, like an incorrect past address, may not hurt your credit score. But it's still a good idea to get all errors corrected, even the ones you think don’t matter. Start by reviewing your credit reports, which you can do for free once a week.

How to get your free credit reports

We often talk about your credit report, singular, but the truth is that you have many credit reports and credit scores. In the U.S., there are three main credit bureaus to know about:

• Equifax

• Experian

• TransUnion

These three credit bureaus are independent of each other, and they don't typically share information. This means your credit reports could be different depending on the bureau that issues it, so you need to check all three reports regularly.

You’re legally entitled to free copies of your credit reports. You can get them once a week by visiting AnnualCreditReport.com.

When you receive your reports, carefully go through the line items on each one and make sure the information your creditors have reported to the bureaus is correct. If you find an error on any of your credit reports, there are steps you can take to correct the inaccuracy.

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Types of Credit Report Errors You Can Dispute

You have the right to fair and accurate credit reports. This means you can dispute any type of incorrect information that appears on your reports. Here are some of the common errors you may want to dispute.

Personal information errors

Your personal information, like your name and Social Security number, are how the credit bureaus link your credit accounts to your credit reports. 

Any errors in this info could lead to missing accounts. A wrong piece of personal information could also lead to misattributed accounts, meaning you may wind up with someone else's account on your credit reports. 

To start, make sure your name is correct, including first, middle, and last names. Also check that your Social Security number is correct.

If you've recently moved, the credit bureaus may not have your current address. While an outdated address may not directly impact your credit, it could contribute to missing or misattributed accounts so it can be helpful to update it.

Account status errors

Credit bureaus rely on information reported to them by creditors, and they don't need to verify the information to put it on your reports. This means you could wind up with outdated or incorrect account details.

For example, you may have a closed account that is still listed as open (or vice versa). Or you may be listed as the owner of an account when you are simply an authorized user. 

It's also good to check that the payment history for each account is correct. An account reported as delinquent that is actually in good standing could do a lot of damage to your credit scores. Check that payment dates and balances are reasonably accurate. (Remember that most creditors only report your balances once per statement period, so something being a few weeks out of date may not be an error so much as simply not yet updated this month.)

Duplicate or misattributed accounts

It's a good thing when all of your accounts are present—but only once each. Sometimes duplicate accounts can show up, and those should be disputed.

As mentioned above, sometimes accounts can be misattributed, too. Even if an account appears to be yours at first glance, it could actually belong to someone else with the same or a similar name. This is particularly common if you have a common surname. 

Check that you recognize all of the accounts and that the name and Social Security number matches your own.

Fraudulent accounts

In some cases, an account you don't recognize may not be a simple mistake: it could be identity theft. If the account information all seems correct but you're certain the account doesn't really belong to you, this could be a sign of fraud.

Not only should you dispute any accounts you don't recognize, but you may also want to look into the rest of your accounts for other signs of identity theft. You can report identity theft to the Federal Trade Commission (FTC) through the website IdentityTheft.gov.

How to Dispute Your Credit Report Errors

You have the legal right to dispute inaccurate or fraudulent accounts on your credit reports. And thanks to technology, that process is easier and more accessible than ever, since you can do it online.

To dispute your credit report errors online, simply go to the website for each credit bureau:

• Dispute an Equifax error

• Dispute an Experian error

• Dispute a TransUnion error

Steps to dispute credit report errors

Online disputes make the process fairly simple for easy fixes. Here's how to get started:

• Step 1: Go over all three of your credit reports item by item. Each credit bureau gathers its own information, so you may have errors on just one or two reports, or on all three.

• Step 2: Highlight any and all errors. Even a seemingly small error, like swapped letters in your name, could lead to bigger issues, so make sure to flag anything that isn't correct.

• Step 3: Collect your supporting documents. Simple disputes, such as a duplicate account, may not require any extra documentation. However, it can be useful to provide proof that backs up your dispute. It can also help speed up the process since the bureau won't need to contact you for the documents later. 

• Step 4: Head online to file your disputes. This will typically require creating an online account with the bureau if you don't have one already. You'll need to file a separate dispute with each credit bureau where the error is reported. For instance, if a closed account is listed as open on all three credit reports, you'll need to file a separate dispute with all three credit bureaus for that single account.

What type of documents to submit with your dispute

The type of documentation you need will depend on what type of error you're disputing. For example, if you're disputing a spelling error in your name or address, you may want to submit a copy of your driver's license with full name and address. 

If you're disputing the payment status of an account, on the other hand, you may need to supply bank statements or payment receipts that show when and how much you paid on the account. Or you may need to provide bankruptcy court documents if you’re disputing an account discharged during bankruptcy.

How to Send a Dispute Letter to the Credit Bureaus

The simplest way to dispute your credit report errors is to do it online. You can also do it by mail. The process will vary a bit depending on the credit bureau involved.

Send any mail to the credit bureaus via certified mail with a return receipt requested so you know that it was received. This will give you proof showing when the dispute was filed.

You'll need to print and fill out a form for each item you want to dispute. Mail that paperwork, plus any required documentation, to the individual credit bureaus. 

Here's how to get in touch with the three credit bureaus by phone or mail:

Equifax

• Phone: 888-378-4329

• Mail: Equifax Information Services LLC P.O. Box 740256 Atlanta, GA 30374-0256

Experian

• Phone: 800-916-8800 or 855-414-6048

• Mail: Experian P.O. Box 4500 Allen, TX 75013

TransUnion

• Phone: 800-916-8800

• Mail: TransUnion Consumer Solutions P.O. Box 2000 Chester, PA 19016-2000

How to Dispute Errors with Information Furnishers (Original Creditors)

Disputing errors with the credit bureaus can get them off your credit reports, but it may also be useful to deal with errors at the source: the information furnisher (the company that provided the information in the first place). 

Credit bureaus typically get their information from creditors directly, so any mistakes on your credit reports could mean mistakes with your creditors, too.

Here are some basic steps to follow to dispute errors with creditors:

• Check your accounts. Make sure your credit accounts have the correct information, including personal details like your name and Social Security number. You should also look at balances, payment dates, and other details for errors.

• Find the right contact. Most creditors will have a customer service line; this is usually the best place to start. If this doesn't get you to the right department, they should be able to direct you where you need to go.

• Make your case. A misspelled name or an out-of-date address should be simple enough to fix over email, chat, or on the phone. More complex disputes may require submitting supporting documents and/or making multiple phone calls.

• Keep records. Hold onto any correspondence, be it email or snail mail, and make notes of any phone calls, including dates, times, and the name of the person you talked to.

• Follow up. Give your creditor a few weeks to address the issue. If you haven't seen updates within 30 to 45 days, follow up with a phone call.

• Check your credit reports. When creditors correct information, they typically need to notify the credit bureaus so your credit reports can be updated. Once your creditor lets you know the issue has been resolved, check your credit reports to make sure everything has been corrected.

No matter how things go, always keep your cool. As frustrating as errors can be, it's not the fault of the customer service representative, so don't take it out on them. Stay calm and polite for the best results.

What Happens During the Credit Bureau Investigation?

Once you submit your dispute to the credit bureau, the investigation starts. The bureau has 30 days to investigate your dispute and determine if it is legitimate or not. (This period can be extended to 45 days if you submit your documentation after you file your dispute or the bureau requires additional information.)

Credit report disputes usually follow this general framework:

• The credit bureau will review your information. It may request additional documentation.

• In some cases, the bureau may find your dispute "frivolous," meaning your dispute has no merit. This may happen if you fail to provide any proof for your dispute or if you submit a dispute for an item you already attempted to dispute before without additional proof. It could also happen if you dispute accurate negative information.

• If the bureau finds your dispute has merit, it will either fix the error on its own or forward the dispute to the information furnisher (typically a creditor). 

• The information furnisher will then start its own investigation. 

• If the information furnisher finds that there was indeed an error, then it will correct the error and notify the bureau. (In this case, the information furnisher is also required to notify the other two credit bureaus to update the error, as well.)

• If the furnisher finds the information to be accurate, this will be reported to the bureau. 

• The credit bureau will then review the information furnisher's response and make any necessary changes to your report.

No matter what the outcome, the credit bureau must give you the results in writing. If the dispute results in a change to your credit report, the bureau will also include a copy of your report.

Reasons Credit Disputes Get Rejected

Not every credit report dispute results in a positive outcome. Some common reasons your dispute might be rejected include:

• Not enough documentation or evidence. The credit bureau needs proof of your claim, so a lack of evidence could lead to a dismissal or rejection.

• Vague or unclear dispute submission. If the credit bureau can't determine which item you're disputing or why, it may deny your dispute out of hand. Be sure to lay out your dispute clearly, including the specific account that you are disputing and a clear description of the error.

• The information is already correct. You're entitled to an error-free credit report, but that's the limit of it. If a negative item is legitimate, meaning the account belongs to you and the information reported is accurate, then the dispute will be rejected. For example, paying off a collection account doesn't remove it from your credit history unless you specifically negotiate with the creditor to stop reporting it.

Tips for a successful dispute

Here are few general tips for filing a successful dispute:

• Keep your dispute clear and concise. Specify the item you are disputing and the reason why. (It can also be helpful to run your explanation through a grammar and spellchecker to make sure you have no errors of your own.)

• Include any relevant documents. A little proof can go a long way toward a successful dispute.

• Only dispute errors, not valid accounts or negative items. The credit bureaus aren't required to remove negative items if they belong to you and are accurate. You can only successfully dispute errors and mistakes.

• Keep copies of all correspondence. A paper trail can be helpful for keeping track of what you've disputed and any outcomes.

• Be patient. The bureaus typically have at least 30 days to investigate your dispute.

Track Your Dispute

You can track the status of your dispute online by creating an account with the credit bureau. This is the best way to get up-to-date info on your dispute. 

Otherwise, you'll need to wait until you receive a notice in the mail. There's a time limit of 30 or 45 days for a credit investigation. You may need to provide more information later on.

By law, the credit bureaus must report the results to you within five days of concluding the investigation. You receive a copy of the investigation results, as well as a free copy of your credit report reflecting any changes made. 

Usually, credit disputes are resolved within a few weeks. That doesn't mean you'll see a change in your credit report that quickly. The change may take a few months to appear on your credit report. 

After receiving information regarding the resolution of your dispute from the credit bureaus, check your credit report regularly for the correction. If several months pass and there's still no update, contact the credit reporting bureaus and the information furnisher to follow up.

Options When Disputes Fail

There is no guarantee that a dispute will go your way. The best way to handle the situation will depend on why your dispute was rejected in the first place. Here are a few things to consider.

If you disagree with the outcome

You can try to contact the information furnisher directly if you feel their investigation wasn't done correctly. If you can get the original data furnisher to correct the problem, they will then be required to contact the credit bureaus to update the account.

If you feel that the information furnisher isn't operating fairly or legally, you can also escalate to the Consumer Financial Protection Bureau (CFPB). You can do this by filing a complaint online at https://www.consumerfinance.gov/complaint/. 

In some cases, you may consider contacting a consumer protection attorney, especially if you feel that a company is violating your consumer rights. Keep in mind that you may have to pay attorney fees to go this route.

If the information is negative but accurate

Disputes don't work to remove items from your credit reports if the information is correct, even if the item is negatively impacting your credit. The best way to handle these types of items is to deal with the debt itself.

You have a range of tools for dealing with debt, even if it's already in collections. For example, debt settlement involves negotiating with your creditors to get rid of your debt for less than you owe. This can let you put the debt behind you, so you can start rebuilding your credit going forward. Bankruptcy may also be an option if you qualify.

Keep an Eye On Your Credit Reports for Future Errors

Unfortunately, credit report errors are a common problem, so don't let your guard down. Check your credit reports regularly for accuracy so you can catch errors early. This can help prevent mistakes on your reports from damaging your credit score and impacting your finances.

Free credit monitoring tools can be a good way to keep an eye on your credit reports. Free credit scores, like the ones you get from your credit card issuers, can also be an easy way to monitor your credit. Any drastic unexpected changes to your score could indicate a problem with your reports that requires further investigation.