How to dispute an error on your credit report

Your credit report summarizes how well you manage credit, including how much money you owe and whether or not you pay your bills on time. Errors on your report — like accounts belonging to someone else or payments wrongly reported as late — could affect your ability to get the best credit cards and loans.

You have the right to dispute errors on your credit report. Doing so can help your credit report stay accurate and even increase your score if negative errors affect it.

Causes of credit report errors

Credit report errors can be caused by a variety of situations. Sometimes, they’re caused by data entry errors made by the lender, such as mistakenly marking an on-time payment as late. In other cases, the credit bureaus mix up two people with similar names or Social Security numbers. Identity theft is another possible cause of errors.

When you’re looking at your credit report, keep an eye out for these common errors:

• Accounts that don’t belong to you
• Accounts you are listed as the owner when you are an authorized user
• Closed accounts reported as open, or vice versa
• Duplications of debts
• Incorrect balance or credit limit information
• Incorrect credit limit of an account
• Incorrect current balance of an account
• On-time payments wrongly reported as late
• Wrong name, phone number or address

To spot these errors, it’s important to review your credit report regularly. You can get a free copy from each of the three main credit bureaus (Equifax, Experian and TransUnion) at AnnualCreditReport.com.

Not all errors affect your credit score. Small errors like a wrong middle initial or workplace aren’t going to cost you money, but you can still dispute them to keep your information accurate.

Negative information vs. legitimate errors

Negative information — also known as a derogatory mark — is accurate information that reflects poorly on your borrowing and repayment habits in the eyes of lenders. Examples of negative information include:

• Accounts sent to collections
• Bankruptcy
• Charge-offs
• Foreclosureleast
• Late payments (30 days or more)
• Missed payments

Negative information generally can’t be disputed as long as it’s accurate. However, past credit mistakes won’t follow you forever. They will generally come off your credit report within seven years (or 10 years in the case of Chapter 7 bankruptcy). Be skeptical of companies that claim they can get rid of negative information on your credit report sooner, as this is often a sign of a credit repair scam.

If old negative information is still showing up on your credit report after it should have been removed, you can file a dispute to correct the issue.

Ways to dispute errors on your credit report

There are three main ways to correct errors on your credit report: writing a letter, filing a dispute online or calling the credit bureaus. The best option will vary depending on your preferences and the type of error you need to correct.

Written letter

One option for disputing errors on your credit report is to write a dispute letter and mail it to the credit bureaus. When writing your letter, remember to include the following information:

• Your full name, address and contact information
• Details of the mistake that you want fixed
• An explanation of why the mistake should be corrected
• Copies of documents showing why it is an error
• A copy of your report highlighting the mistakes

The Federal Trade Commission (FTC) has a sample letter you can use as a template. Edit the information in [brackets] to customize the letter to fit your situation.

The FTC suggests sending the letter by certified mail and paying for a return receipt so you have proof that the credit bureau received your letter. Keep copies of all communications with the credit bureaus in case you need to refer to them later.

Each of the three main credit bureaus has instructions on their mail dispute process:

Online submission

Each of the main credit bureaus allows consumers to file disputes online. For many people, this will be the easiest and fastest way to file a dispute.

Some issues can’t be disputed online. For example, Experian warns you might need to talk with a specialist on the phone to resolve errors with your name or address online. You may also need to dispute errors from identity theft by phone or mail.

Once you’ve filed the dispute, you can check its status online. The online submission portals are available on the following pages:

Phone

You can also file a dispute with each of the main credit bureaus by phone. Filing by phone might be the best option if you need a dispute specialist to help you with the process. All three credit bureaus have phone numbers you can call:

• Equifax: (866) 349-5191
• Experian: (888) 397-3742
• TransUnion: (800) 916-8800

Steps to correct credit report errors

Credit report errors can be fixed, but if you have multiple errors on your report, it may take time and patience. Typically, you’ll need to take the following steps:

1. Review your credit report. The first step is to request a copy of your credit report from each major bureau. Once you have your reports, carefully review them to find any errors.
2. Gather evidence. In your dispute, you may need to provide proof that a mistake was made. Be prepared to provide copies of billing statements and letters from creditors. If the errors result from identity theft, you might need a police report.
3. Choose your dispute method. Decide whether you’ll make your best case by letter, online submission portal or over the phone.
4. File your dispute. When submitting your dispute, follow the relevant bureau’s guidelines.
5. Wait for a response. The bureau will contact the creditor who reported the information. The creditor will investigate to determine whether the information it reported was accurate and then notify the credit bureau.
6. Review the results. Once the investigation is complete, the credit bureau will notify you of the outcome in writing. If you were successful, you’ll also receive an updated copy of your credit report.
7. Monitor your credit score. Set reminders to check your credit report regularly so that you can spot any new errors that might affect your credit score in the future.

How a credit report dispute can affect your credit score

Disputing an error on your credit report does not guarantee your credit score will change. While you can file disputes without any penalty, the outcome can affect your credit scores.

Successful disputes can cause positive, negative or no effects on your credit scores:

• Score improvements: If the mistake said you had errors like late payments, past-due accounts, settled debts or accounts in collections, your score could improve after the error is corrected.
• No score changes: Some types of errors don’t affect your credit score, so you won’t see a change after the mistake is corrected. Corrections in personal information, like the spelling of your name or address, won’t change your score unless they were incorrectly tied to someone else’s account.
• Score reductions: Because part of your credit score is based on length of credit history and credit utilization, removing an incorrect or duplicate account could potentially decrease your credit score. Any error not in your favor that you correct could hurt your score.

How much time it takes to fix errors on your credit reports

Under the Fair Reporting Act, credit bureaus must respond to your dispute promptly. After the credit bureau receives your dispute, it has 30 days to finish its investigation and a further five days to notify you of its findings. If you supply additional information during the 30 days, the credit bureau has another 15 days (45 days total) to finalize its investigation.

Within those guidelines, several factors can affect how long the process takes, including:

• Availability of evidence
• Complexity of discrepancies
• Credit bureau processing time
• Responsiveness of creditors and credit bureaus
• Volume of disputes

Rapid rescoring options

Even if you are successful in your dispute, it can take some time for the changes to show up on your credit reports. If you need the changes to take effect more quickly (like if you are applying for a mortgage), your lender might offer a rapid rescore.

A rapid rescore speeds up the process of updating your credit score. Some rescores can be processed in three to five business days, depending on your circumstances.

When to work with a credit repair agency

If you find the credit repair process confusing or too time-consuming, you don’t have to do it alone. Credit repair companies can help you identify potential errors on your credit report and submit disputes to the major credit bureaus on your behalf.

There are pros and cons of working with credit repair agencies. These services can help you save time and effort, and disputing errors on your report may help you improve your score. However, credit repair agencies typically charge fees for their services, so consider the costs.

Not every company advertising credit repair services is legitimate. Watch out for warning signs of a credit repair scam, such as pressure to pay upfront fees or promises to remove (accurate) negative information from your credit history.

The bottom line

Credit report errors are not uncommon. If your report has errors, your credit score could be unfairly low, making it harder to qualify for personal loans, credit cards or even an apartment. Disputing errors on your credit report — either on your own or with the help of a credit repair agency — ensures your credit score is accurate and up to date.

To get started, request a copy of your credit report from the three credit bureaus.

Frequently asked questions

• Will disputing errors on my credit report negatively impact my credit score?
  

  Under the Fair Credit Reporting Act, you have the right to dispute errors on your credit report without being penalized for it. However, some dispute outcomes could either lower or raise your score.

• What should I do if my dispute is rejected by the credit bureaus?
  

  When your dispute is rejected, you have a few options. If additional information strengthens your case, you can resubmit the dispute with the new evidence. If that doesn’t work, you can also contact the creditor directly to try to resolve the issue.

• What are my rights if a credit report error can’t be resolved?
  

  If you have an unresolved dispute, you can ask the credit bureau to add a summary of the dispute to your file. When a potential lender requests your credit report, they will see the statement and may consider it when evaluating your creditworthiness.

• How often should I check my credit report for errors?
  

  As a general rule, it’s a good idea to check your credit report at least once a year. You may want to check your report more often if you plan to finance a large purchase like a new car. More frequent checks could also make sense if you’re worried about being a victim of identity theft, such as after your wallet is lost or stolen.