How You Can Dispute Mistakes on Your Credit Report
A few weeks ago, I was reviewing my credit report and was surprised to see a handful of issues with it.
First, I found that my Social Security number had been compromised, leading to me apparently applying for credit at a Mitsubishi dealer in Texas. Luckily, the thief doesn’t have enough personal info to get off the lot. I’ve frozen my credit and began the investigate portion of disputing the information on my credit report. To put it mildly, it sucks.
The other issues are less impactful, I noticed an employer I worked for was spelled incorrectly, as well as a few other minor mistakes in my personal information.
So, since I’m having fun dealing with this, I thought I’d take a minute to share how you can dispute any mistakes or issues you find on your credit report, with the goal of making the process a bit easier on you.
When you apply for new credit, the creditor will check your credit report to make sure that you are a reliable borrower. However, if there are mistakes on the report, this can make it harder for you if you want to apply for any new credit. In many cases, it’s hard to fix these mistakes yourself — yet this shouldn’t stop you from trying when the error is made by a creditor or a debt collector. There are easy ways how you can dispute errors on your credit report and get errors corrected by yourself.
How To Report Credit Report Errors
If you find an error on your credit report, dispute it immediately. The Fair Credit Reporting Act (FCRA) requires the credit bureaus to investigate all disputes. The credit bureau must contact the company that provided the information in question and ask for verification. If the information is found to be inaccurate, the credit bureau must correct it.
If the dispute is successful, the credit bureau will send you a notification of the correction. You should also get a free copy of your updated report. If the dispute is unsuccessful, the credit bureau will send you a notification of the outcome, along with an explanation of why they believe the information on your report is accurate.
You can dispute errors on your credit report by mail, phone, or online.
When mailing a dispute, including the following:
● Your name, address, and phone number
● A copy of your credit report with the error highlighted
● An explanation of why you believe the error is incorrect
● Any documentation you have to support your dispute (for example, a letter from the creditor acknowledging the error)
When you dispute an error by phone, have the following information ready:
● Your name, address, and phone number
● The credit bureau’s dispute number (this will be given to you when you start the dispute process)
● A copy of your credit report with the error highlighted
● An explanation of why you believe the error is incorrect
● Any documentation you have to support your dispute (for example, a letter from the creditor acknowledging the error)
When disputing an error online, you will need to provide:
● Your name, address, and phone number
● The credit bureau’s dispute website URL (will be provided to you when you start the dispute process)
● A copy of your credit report with the error highlighted
● An explanation of why you believe the error is incorrect
● Any documentation you have to support your dispute (for example, a letter from the creditor acknowledging the error)
If you’re not sure which credit bureau was used to pull your report, dispute the error with all three credit bureaus.
What Happens After I Dispute an Error?
As soon as the credit bureau receives your dispute, they have to investigate and resolve the dispute within 30 days. If you dispute by mail, the credit bureau has to send you a written notice within five days of receiving your dispute, telling you that they’re investigating the error.
During the investigation process, the credit bureau will contact the creditor or debt collector that supplied the incorrect information and ask them to verify it. The creditor or debt collector has 30 days to respond to the credit bureau.
If the dispute is resolved in your favor, the credit bureau will send you notification of the correction, and your updated credit report. If the dispute is not resolved in your favor, the credit bureau will send you a notification of the outcome, along with an explanation of why they believe the information on your report is accurate.
You can also ask the creditor or debt collector to remove the incorrect information from your credit report. However, they are not required to do so.
If you’re not happy with the dispute process or the outcome, you can file a dispute with the Consumer Financial Protection Bureau (CFPB).
Credit bureaus are not allowed to charge you to dispute an error on your credit report.
If you find an error on your credit report, take action to dispute it as soon as possible. By law, credit bureaus have to investigate and correct any errors on your credit report. And the sooner you dispute an error, the sooner it can be corrected.
How Common Are Errors on Credit Reports?
Unfortunately, errors on credit reports are not uncommon. A study by the Federal Trade Commission (FTC) found that one in five consumers had an error on their credit report.
While most errors are minor, some can have a major impact on your ability to get credit, such as a loan or credit card. For example, if you’re trying to get a mortgage and there’s an error on your credit report that shows you owe money to a creditor, it could prevent you from getting the loan.
Even if the error doesn’t impact your ability to get credit, it’s important to dispute it as soon as possible. An error on your credit report can lower your credit score, which can lead to higher interest rates and make it more difficult to get credit in the future.
Conclusion
It’s important to be proactive about fixing mistakes on your credit report, as they can adversely affect your credit score and make it difficult to borrow money or get a job. Fortunately, you don’t need to hire a 3rd party to dispute these errors for you — you can do it yourself. By contacting the credit reporting agencies directly, you can work to get the mistakes corrected and improve your credit score.
If you’re not sure where to start, or you have any questions about the dispute process, be sure to contact the credit reporting agencies directly for assistance, or seek a nonprofit that offers credit report reviews.
They can help you understand what steps you need to take to fix your credit report, and they can also provide advice on how to improve your credit score in the future. With their help, you can dispute mistakes on your credit report and get back on track financially.
Thanks for reading, and if you have ideas for an upcoming story, or simply want to let me know your thoughts about this story, email me at rick@moneyfit.org.
