Posted by: John S Kiernan

Everyone has three major credit reports: from TransUnion, Equifax and Experian, respectively. And it’s extremely important to make sure that yours are accurate. All credit scores are based on these reports, which means mistakes can impact the credit card and loan terms you’re able to qualify for, not to mention where you live and what kind of car you drive. They can even affect your job prospects, too.

Credit report errors are also far too common. The Federal Trade Commission estimates that roughly 1 in 5 people (or about 42 million Americans) have an inaccurate credit report. Other studies peg the mistake rate at as high as 90%. And all it can take is a single credit report inaccuracy for a lender, landlord or other decision-maker to decide you aren’t trustworthy enough.

That is why it’s wise to review your credit report for errors on a regular basis. You can check your latest TransUnion credit report, updated daily, for free for WalletHub. And you can get your one of your three major credit reports once every three months through AnnualCreditReport.com.

Below, we’ll explain what types of credit report information you can dispute, how to dispute it and more.

1. What Can You Dispute on a Credit Report?
2. How to Dispute Credit Report Inaccuracies
3. What to Do After an Unsuccessful Dispute
4. Ask The Experts: Dealing with Disputes

What Can You Dispute on a Credit Report?

You can dispute the following types of credit report errors:

• Inaccurate Biographical Information – This could be a misspelled name, an unknown address or an unrecognized employer. The latter two especially could be signs of fraud.
• Duplicate Accounts – Financial institutions and the credit bureaus sometimes list accounts twice by mistake. In other cases, debt collectors may relist accounts to trick you into making a payment.
• Fraudulent Accounts – Criminals are known to open financial accounts in other people’s names, rack up charges and leave their victims to clean up the mess. And while you can dispute this type of credit report inaccuracy, it’s best to “suppress” any issues stemming from fraud.
• Inaccurate Payment History – Even a single missed payment can be bad for your credit. And you don’t want any undeserved credit damage.

You cannot, however, use the credit report dispute process to remove legitimate info just because it reflects poorly on you.

There are strict timeframes for how long negative information must remain on your credit reports. And there’s nothing you can do to shorten them. Sure, you can explain special circumstances on the Personal Statement portion of your credit report. But if the information is accurate, you can’t count on getting it removed.

With that being said, for-profit companies such as Lexington Law have had success aggressively disputing all negative records on a client’s credit report. Oftentimes, the company that provided the information to the credit bureaus won’t have the documentation needed to show it’s legitimate.

How to Dispute Credit Report Inaccuracies

Filing a credit report dispute is easy. You can do it with just a few clicks. But if you want to dispute your credit report and win, there are a couple of others steps that you should take first.

Step 1: Contact the Source of the Inaccurate Info

Experian, Equifax and TransUnion have to get their information somewhere. And there’s a chance that you’ll be able to correct credit report inaccuracies by dealing directly with the source(s) of the info in question. And you can find the relevant contact information on your report.

Check Your Credit Report for Free

If your initial overture works, it will make the dispute much easier for the credit bureaus to handle. But you should still tell them about the issue, just to make sure they correct your reports. And you should confirm the error is fixed on all three of your major credit reports. The major credit bureaus all track the same types of information, but that doesn’t mean their records match exactly.

Step 2: Prepare Your Supporting Documents

It’s important to build your case before bringing it to a bureau’s attention. This will help speed up the process because the bureau is probably going to ask for documentation.

Here’s what you’ll need:

• A Copy of the Report Containing the Error (If Disputing By Mail): Print out your erroneous credit report(s), make copies, and note where the errors appear.
• Your Financial Records: You should gather all relevant financial records (e.g. monthly statements from the institution the erroneous information supposedly originates from) that prove your case. If Step 1 resulted in a favorable outcome, asking the financial institution for a letter acknowledging its mistake can go a long way.
• Correspondence Records: Whether you’re disputing online or by mail, you’ll want to keep copies of your dealings with the credit bureaus. This may come in handy when you interact with them in the future.

Step 3: File Your Dispute Online, By Mail or By Phone

Online

Filing your credit report dispute online is the simplest option. Anytime you check your credit report online, there will be a link to begin the dispute process. You can also visit each bureau’s online dispute page directly:

• File a dispute with Experian
• File a dispute with Equifax
• File a Dispute with TransUnion.

Here’s what the start of the dispute process looks like on the Experian website:

After you arrive at this type of page and select the option that best describes your situation, you’ll have to verify your identity and enter your report number. You’ll then be able to review your report, find the error in question and simply click the “Dispute” button right from the page.

Once you do so, you’ll be able to choose the reason for your dispute from a drop down menu and provide a short explanation of why you think the info is inaccurate.

After you submit your dispute, you’ll be redirected to a confirmation page, which you should print for your records. Once you’ve done so, it’s time to wait.

By Mail

To dispute credit report errors by mail, send a dispute letter (see below) as well as printed copies of your credit report(s) and relevant financial records to the credit bureau(s) whose reports contain the errors. You can use the following contact information.

Credit Bureau	Mailing Address	Phone Number
Experian	Experian / P.O. Box 9701 / Allen, TX 75013	1-888-397-3742
Equifax	Equifax Information Services, LLC / P.O. Box 740256 / Atlanta, GA 30374	1-800-685-1111
TransUnion	TransUnion, LLC / P.O. Box 2000 / Chester, PA 19022	1-800-916-8800

When you mail a credit report dispute, it’s helpful to include a summary letter that details what you believe to be wrong, why you think it’s wrong, and what evidence you have to support your claim. This letter should include your full name, your current address, the confirmation number for your credit report, and the account numbers for any relevant loans and lines of credit.

Here’s a sample dispute letter that you can customize to your needs:

By Phone

You can certainly try calling the credit bureaus to initiate a credit report dispute by phone. But unless it’s a quick fix, written correspondence and some documentation will likely be necessary.

That said, it’s not a bad idea to give the bureaus a call once you’ve submitted your dispute, whether online or through the mail. At least you’ll be able to confirm that they’ve received it and the process is moving forward.

Step 4: Wait for a Response

Once a credit report dispute begins, the credit bureau will contact the source of the information in question – also known as the data furnisher – to verify its legitimacy. Data furnishers typically have up to 30 days (45 days in some cases) to respond to such inquiries. But the process takes an average of 14 days, according to Experian.

When a bureau completes its investigation, it will mail you the results. If you filed an online credit report dispute, you will also receive an email with a link to the results. These results will lay out the bureau’s findings, plus the action it will take as a result (i.e. removing the error or making no change).

Step 5: Share the Good News or Escalate Matters

If your dispute results in changes to your credit report, the Fair Credit Reporting Act (FCRA) requires the credit bureau(s) in question to notify anyone who has viewed your report in the past six months. But they only have to do so upon request.

You can also ask the bureau(s) to send updated copies of your report to any employer that has viewed your report in the past two years. We definitely recommend doing so if if you think it will help your situation.

What to Do After an Unsuccessful Dispute

If you’re unhappy with the results of a credit report dispute, you can always try again. But nothing is likely to change unless you provide new evidence.

You can also escalate your case to the FTC or the Consumer Financial Protection Bureau, if necessary. If a credit report error is serious enough, you may want to hire an attorney that specializes in such matters, too.

Final Thoughts

Given how much time and money they can wind up costing you, mistakes on your credit reports should not be taken lightly. And that’s why you should review your credit reports for errors on a regular basis.

You should also learn the difference between disputing and suppressing credit report information. The latter is a special process for making sure information resulting from identity theft can’t return to your credit report once removed.

Ask the Experts: Dealing with Disputes

For a greater understanding of the credit report dispute process, we asked a panel of credit experts to weigh in on the following questions. You can meet our panel and read their responses below.

1. Do you think the average person is aware of his or her ability to dispute credit report inaccuracies?
2. By and large, do you think people tend to be overly hesitant or too eager to dispute items on their credit reports?
3. Do you think credit bureaus make mistakes at an unacceptable rate?
4. What do you think is the biggest impediment people face in filing a dispute?

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• Assma M. Sawani Assistant Professor of Accounting at University of Colorado at Colorado Springs
• Sharon Lassar John J. Gilbert Endowed Professor and Associate Dean for Executive & Professional Programs in the Daniels College of Business and Director of the School of Accountancy at University of Denver
• Patrick R. Colabella Associate Professor of Accounting and Taxation at St. John's University

Assma M. Sawani Assistant Professor of Accounting at University of Colorado at Colorado Springs Do you think the average person is aware of his or her ability to dispute credit report inaccuracies? Most people are unaware that they can dispute their credit report. By and large, do you think people tend to be overly hesitant or too eager to dispute items on their credit reports? People are too hesitant to do so and just accept their credit report as given. Do you think credit bureaus make mistakes at an unacceptable rate? This is difficult to answer. I’m sure they make mistakes because they cannot be perfect but it’s hard to judge to what extent. However, since most people do not dispute and review their reports, it’s likely that the credit bureaus mistakes rarely get caught and mitigated. What do you think is the biggest impediment people face in filing a dispute? The biggest impediment is that most people don’t know they can do so and how to go about doing it. Sharon Lassar John J. Gilbert Endowed Professor and Associate Dean for Executive & Professional Programs in the Daniels College of Business and Director of the School of Accountancy at University of Denver Do you think the average person is aware of his or her ability to dispute credit report inaccuracies? Yes, I believe that public education about credit reporting has generally been effective. Many landlords ask prospective tenants to include their credit scores with their housing applications, for example. People seem to understand the need to keep their credit score as high as possible and the people I interact with are aware of their right to a free annual credit report. By and large, do you think people tend to be overly hesitant or too eager to dispute items on their credit reports? Neither. Individuals might be somewhat hesitant (but not overly so) to dispute items on their credit report because it takes some time to do so. If the erroneous item is a minor item, some may choose to simply ignore it unless it is having a negative impact on their credit score at a time when they need a high credit score, like when they are arranging credit for a major purchase. Do you think credit bureaus make mistakes at an unacceptable rate? No. I believe credit bureaus generally do a good job at tracking activity and associating the activity with the right person. What do you think is the biggest impediment people face in filing a dispute? The biggest impediment to filing a dispute is time. It takes time to request and file the appropriate paperwork to dispute an item on a credit report. Patrick R. Colabella Associate Professor of Accounting and Taxation at St. John's University Do you think the average person is aware of his or her ability to dispute credit report inaccuracies? No, the average person cannot cope with this. By and large, do you think people tend to be overly hesitant or too eager to dispute items on their credit reports? They would call the credit card company but hesitate to deal with the credit report companies. Do you think credit bureaus make mistakes at an unacceptable rate? No. What do you think is the biggest impediment people face in filing a dispute? Ignorance of the law.

 

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