Disputing Errors

Errors in your credit report will negatively affect your overall credit, and they may not be your fault. The process of disputing errors takes time and patience, but there is an easy way to do it.

There are three credit bureaus that have your credit report: Experian, Equifax and TransUnion. Due to the way that credit is processed, each credit bureau report should be examined independently because they all may not have the same error.

The first step is to get copies of your credit report from all three of the credit bureaus. Federal law mandates that a person may receive their credit reports free of charge. Each of the three bureaus must provide one free report every twelve months. There is only official site where consumers can go to obtain their credit reports free of charge. Simply go to annualcreditreport.com and complete the information requested.

Examine each report and look for errors. Common errors to look for that may be lowering your credit score are: misspelled name, incorrect address, phone number, birthday and social security number. Any of these errors could affect your score because someone else's information could end up in your report. Next, look at all of your account information. Make sure all account information, balance and limits, and any account activity is correct.

If you find legitimate errors on any of your reports, the next step is to start a file where you will keep all communications with the credit bureaus. Keep copies of every letter you send and receive. You may need this later if you need to re-investigate your claim.

For each bureau that has the error on the report, you will need to prepare a letter that clearly states your information, the error and any proof that you have that can prove the error is legitimate. Addresses and Sample Letter » Include copies of any documents that can back up your claim. Send the letter first class mail, with “Return Receipt Required.” This will allow you to receive confirmation the letter was received by the credit bureau on a certain date. Keep a copy of this letter in your file.

According to the Fair Credit Reporting Act (FCRA), the credit bureau must investigate all disputes and contact you in roughly 30 days with the results of the investigation. All errors are crosschecked with the credit lender's information. They will either report the error was corrected and fixed, or they will refuse to correct the error. An error correction will be refused if the creditor (lender, collection agency, courthouse, etc.) confirms that the information currently on your report is correct. If the error is corrected, you will receive a free copy of your report showing the correction.

If the credit bureau will not fix the error, the next step to take is to write a follow-up letter, asking the credit bureau to fully explain the dispute and why it was not corrected. At this point, you should also contact the creditor explaining the dispute, and make sure that their records are correct. Again, include copies of relevant documents.

If your dispute is again not corrected, the final step you can take is to contact government agencies that can help such as, the Federal Trade Commission (FTC) or your State Attorney General. You can also contact an FCRA attorney, who can give you specialized legal advice.