Aeron RuparMistakes on your credit report can drag down your credit score, affecting your ability to qualify for loans or credit cards and possibly raising the interest rates you pay. Correcting these errors by disputing them can be an effective way to boost your credit score quickly.
In fact, from 2021 to 2023, inaccurate information on credit reports was the most common issue reported to the Consumer Financial Protection Bureau, based on data analyzed by Consumer Reports.
If you’re ready to tackle these errors, here’s a four-step guide to disputing and removing inaccurate items from your credit report.
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To start, obtain a free copy of your credit report from each of the three major credit bureaus, Equifax, Experian, and TransUnion. You’re entitled to one free report per bureau each year, which you can access through AnnualCreditReport.com.
It’s crucial to check each report because errors might only appear on one and not the others. Carefully reviewing these reports gives you a complete picture of what creditors see when they assess your credit.
Once you have your credit reports, go through them with a fine-tooth comb. Common errors can include incorrect personal information like outdated addresses or incorrect Social Security numbers, accounts you don’t recognize (which might suggest identity theft), and account inaccuracies, such as incorrect balances, wrong credit limits, or accounts that show up as delinquent despite being paid off.
Other common issues are duplicate accounts, where the same debt is listed multiple times, and accounts marked incorrectly, like showing an account as active when it’s closed.
Gathering any documentation backing up your claim is helpful to strengthen your dispute. This could include receipts for payments you’ve made, bank statements showing transactions, billing statements from your creditors, and any relevant correspondence you’ve had with your creditors about the account in question.
For instance, if you have a letter from a creditor confirming that a debt was paid off, include that as proof. Organizing these documents will make it easier for the credit bureau to assess your claim.
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With your documentation in hand, write a concise, professional dispute letter to each credit bureau with an error on your report. This letter should include:
Send your dispute letter and any supporting documents by certified mail with a return receipt to each bureau where you found an error. Certified mail ensures you have proof that the bureau received your dispute, which can be essential if you need to follow up.
Also, include a copy of your credit report with clearly marked disputed items to help them identify the issues more quickly.
If the error remains unresolved after you’ve contacted the credit bureau, or if you believe it might be easier to address it directly, consider reaching out to the creditor or collection agency responsible for the information.
Send a dispute letter similar to the one you used for the bureau and provide the same supporting documentation. Creditors may correct or remove the disputed item directly, making the process faster.
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Once the bureau receives your dispute, they typically have 30 days to investigate and respond. During this time, the bureau will likely contact the creditor or institution responsible for reporting the disputed information. The bureau may also ask you for additional details or documentation, so be prepared to respond promptly to avoid delays.
After the investigation, the credit bureau will send you a written report of the results and an updated copy of your credit report if any changes are made. If the disputed information is found to be incorrect, the bureau will update your report to reflect the correction. If the dispute was resolved in your favor, confirm that the updated report reflects the change across all your credit reports to avoid future issues.
If tackling credit repair feels overwhelming or like too much of a time commitment, you don’t have to go it alone. Credit repair companies are available to assist in disputing errors on your credit report.
Working with a credit repair agency offers several benefits. They can streamline the process, saving you time and effort, and may help improve your credit score by handling disputes on your behalf. Keep in mind, though, that these services come with fees, so weigh the costs carefully to decide if getting professional assistance makes sense for your situation.
The Fair Credit Reporting Act allows you to dispute mistakes on your credit report without penalty. However, correcting an error can occasionally result in a lower credit score. This may happen if the mistake had previously inflated your score.
If your dispute is denied, you have several options. Try resubmitting the dispute with any new evidence that might strengthen your case. Alternatively, you can contact the creditor involved and attempt to resolve the issue with them.
If you’re unable to resolve a dispute, you have the right to request that the credit bureau include a statement of your dispute in your credit file. This note will appear when a lender checks your report, providing context they may consider when assessing your creditworthiness.
Credit report errors are common, and some errors hurt your credit score. Request a copy of your credit report from each of the three bureaus, then carefully check the reports for errors. If you see an account you don’t recognize, a late payment you made on time, or any other error, contact the bureaus to get the problem fixed.
If you want help cleaning up your credit report, choose a reputable credit repair company to file disputes on your behalf.
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Judith Harvey is a seasoned finance editor with over two decades of experience in the financial journalism industry. Her analytical skills and keen insight into market trends quickly made her a sought-after expert in financial reporting.
