Your credit report should be a source of absolute truth. After all, this is supposed to be an overview of your borrowing behaviors with creditors. When you apply for a credit card, mortgage, car loan, or even some non-financial application (such as for jobs and rentals), lenders pull your credit report to judge your creditworthiness.
So, mistakes on your credit report have long-reaching consequences. And yet, many Americans are surprised to learn errors on your credit report are quite common. A 2024 Consumer Reports survey of more than 4,000 people found that 44% of people who checked their credit report found at least one mistake. Of those people, 27% said the mistakes were around account information errors, including accounts they did not recognize, on-time payments being reported as late or missed payments, and debts listed in collections that did not belong to them.
Luckily, there’s a straightforward process in place for disputing credit report errors. Let’s walk you through the process.
Why Mistakes on Your Credit Report Matter
First, it’s essential to understand why mistakes on your credit report matter:
- If your identification information (address, name, birthdate) is incorrect, it can make it hard to get approved for new loans or credit because the information you put on the application doesn’t match what’s on your report.
- If there is an error around account information, such as having debts listed that aren’t yours or payments listed as late even though you’ve paid on time, it can negatively affect your credit score. Each of these errors can significantly lower your credit score and impact your approval for new loans or credit. Or, if you are approved, your lower credit score means you’ll get a much higher interest rate. Paying a higher interest rate can cost you hundreds if not thousands of dollars on your overall loan!
- Sometimes, you need to submit your credit information when applying for a job or a new rental agreement. In these situations, the errors might come across as concerning and cost you that job or lease opportunity.
- Many unexplained errors on your credit report can also indicate someone is trying to steal your identity.
How to Dispute Errors on Your Credit Report
Thanks to the Fair Credit Reporting Act (FCRA), every consumer has a right to an accurate credit report. If you find any mistakes, you can file a dispute to have the information reviewed. Then, the credit bureau will contact the business that reported the information and ask them to verify the data. Credit bureaus must investigate your dispute within 30 days of you filing the request.
There are three credit bureaus: Experian, Equifax, and TransUnion and you have a credit report with each one. While your credit reports should generally be similar, it’s normal for there to be some slight discrepancies. This mainly stems from creditors reporting your information to some, but not all, of the bureaus.
You’ll need to file a dispute with each credit bureau individually that has incorrect information on your credit report.
To file a dispute, take these steps:
- You can file a dispute by mail, phone call, or online. You’ll want to fill out the dispute form and also attach a personal letter. Your letter should include what you think is wrong on your credit report, a copy with the mistakes highlighted, the action you would like the credit bureau to take, and any supporting documents that prove your case. Make sure to only send copies of supporting documents, not originals, so if anything gets lost, you still have proof.
- Experian
- Here is more information about Experian’s dispute process and dispute form.
- Equifax
- Find more information about Equifax’s dispute process here.
- Transunion
- Find the information here about Transunion’s dispute process by mail and dispute form.
- Experian
- The credit bureau must respond to your dispute.
- If your request is deemed “irrelevant,” they’ll notify you of this decision and close out the dispute. They’ll also provide you with their reasoning (such as not enough evidence) so you can follow up if needed.
- Suppose the credit bureau reaches out to the business, and they cannot prove the information to be accurate. In that case, it’s the business’s responsibility to notify all three credit bureaus so all your credit reports can be updated.
- The credit bureau is obligated to give you the dispute results in writing. If your dispute led to any changes in your credit report, you will receive a free copy of your updated report. This copy doesn’t count towards your one free annual report.
- You can ask the credit bureau to send the corrected credit report to any lender that accessed your credit report in the last six months.
Monitor Your Credit
What’s the saying … fool me once, shame on you, fool me twice, shame on me? If you found an error on your credit report once, know it can happen again. And now that you understand the potential adverse side effects of these mistakes, you know just how important it is to catch and rectify these errors.
This is why monitoring your credit is so important. As a consumer, you’re entitled to a free copy of your credit report from each credit bureau once every 12 months. Make it a habit to order this report and review it.
Credit monitoring companies are an option if you don’t have enough time to dedicate to this task. These companies offer many helpful services, including monitoring your credit and alerting you of significant changes in your credit score, reviewing your credit report for mistakes, filing disputes on your behalf, and offering credit improvement advice. Of course, this all comes for a fee.
So, it’s up to you to decide if you’re up for this responsibility or if you’d rather outsource it to someone else. The most important thing is that it gets done by someone!
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