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If your credit report has a mistake, then you need to dispute it.
By law, credit bureaus must prove every entry on your credit report. If they cannot prove an entry, they must remove it.
Today, we’re going to explain how to dispute a mistake on your credit report, which is one of the best ways to improve your credit score.
Your first step is to request a copy of your credit report and look for incorrect information.
Every year, thousands of Americans receive mistaken entries on their credit report. Unfortunately, many don’t discover these errors because they never check their credit report.
To request a copy of your credit report, follow these tips:
Each year, you can get one free credit report from each of America’s three largest credit bureaus, including TransUnion, Experian, and Equifax.
The three major credit bureaus share a website called Annual Credit Report. They use this website to provide annual reports to consumers like you, as mandated by the Fair Credit Reporting Act.
Certain credit cards provide monthly updates on your credit report and estimated credit score. However, each bureau produces your official report and official credit score.
Experts recommend requesting a free copy of your credit report every three months by requesting one copy each from these three bureaus.
The sooner you request a copy of your credit report, the sooner you can start looking for errors.
Your credit report should be self-explanatory. It contains a clear and detailed list of your credit history, including any loans, credit cards, or financing agreements you’ve used with your Social Security Number.
However, not all information on your credit report is 100% accurate:
• Someone may have used your Social Security Number erroneously or typed in your information by error
• A family member, friend, or other person with access to your Social Security Card may have deliberately used your information to access credit
• An unknown individual may have stolen your Social Security Number through hacking or a phishing operation, using your Social Security Number to access credit
• One of your creditors may have made an error, forgetting to report a final payment on your loan, for example
For all of these reasons and more, it’s crucial to check your credit report for any errors or entries you don’t recognize.
If you don’t recognize any entry on your credit report, then you need to notify the credit bureau. The credit bureau can remove the entry, improving your credit score.
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Notify the company that provided the information to the credit bureau.
If you see a mark on your credit report from a credit card company or car dealership reporting unpaid payments, for example, then contact the company. Tell the car dealership or credit card company that you believe there’s an error.
If there are multiple parties involved in the erroneous entry (say, a credit card company and a bank), then notify all parties involved.
Document everything throughout this process. The more evidence you have, the better. You’ll need to provide evidence to the credit bureau to dispute the entry.
Next, you’ll want to notify the credit bureau of the erroneous entry.
You’ve verified the information is erroneous, and you need to remove the entry from your record to improve your credit score.
• All three credit bureaus have online dispute resolution forms. You can enter information into that online form about the dispute to instantly submit the issue.
• Alternatively, send a certified letter to the credit bureau with the same information. It may take longer to process your request, but some report having better success with certified letters instead of online forms.
• Document everything. Make copies of all documents relevant to this dispute. Include relevant communication with the creditor and the company, for example. Add a copy of your original credit report with the mistaken entry. Do not send originals of any documents, as you may need them.
• Explain why the error was erroneous. Provide the credit bureau with evidence showing you paid off your credit card or car loan on time, for example.
• The more evidence you provide that the entry is erroneous, the higher your chances of receiving a quick response.
• By law, credit bureaus must investigate an error and make a report within 30 days.
Ideally, the credit bureau checks your dispute, approves it, and you move forward with your life with a better credit score.
However, if the credit bureau rejects the dispute, then be sure to ask about adding a dispute note to your report to show you disagree with the entry.
If you don’t have luck with the credit bureau, then don’t give up! You can also remove an erroneous entry by reaching out to your credit provider.
Your credit provider is anyone who provided you with the credit that created the erroneous entry, including:
• Student loan servicer
• Credit card company
• Bank
• Car dealership financing agency
Send a certified letter to the credit provider similar to the one you sent to the credit bureau. That certified letter should explain why the entry is erroneous along with evidence supporting your claim.
The next time the credit provider reports to the credit bureaus, the credit provider must note your dispute.
If the dispute was successful, the credit provider must report its findings to the credit bureau immediately, along with any corrections for your credit score.
Removing a mistake from your credit score takes a bit of work.
However, it could save you thousands – even tens of thousands – of dollars by improving your credit score.
Removing a major error on your credit report could instantly boost your credit score, helping you access better financing.
You can’t afford to have mistakes on your credit report. Fix them to improve your credit score.
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