How to Dispute an Error on Your Credit Report
Errors in your credit report can lower your credit score and affect your ability to secure loans, rent an apartment, or even get a job. Fortunately, you have the right to dispute inaccurate information on your credit report and have it corrected. A Los Angeles credit rebuilding lawyer can help walk you through the steps for identifying and disputing errors on your credit report, how to work with credit reporting agencies, and tips for ensuring a smooth process.
Common Credit Report Errors
Before discussing how to dispute errors, it’s helpful to know what kinds of inaccuracies may appear on your credit report. Some common mistakes include:
- Incorrect Personal Information: Misspellings of your name, wrong addresses, or incorrect Social Security numbers.
- Accounts That Don’t Belong to You: Sometimes, accounts belonging to someone else with a similar name or identity theft can appear on your report.
- Duplicate Accounts: The same account may be listed more than once, skewing your credit utilization ratio.
- Incorrect Account Details: This could include wrong balances, payment histories, or credit limits.
- Incorrect Public Records: Bankruptcies, judgments, or liens may appear even after they’ve been resolved or discharged.
Identifying these errors is the first step in protecting your financial health.
Step 1: Check Your Credit Report
The first step in disputing an error is reviewing your credit report. Federal law allows you to obtain a free credit report from each of the three major credit bureaus—Equifax, Experian, and TransUnion—once a year through AnnualCreditReport.com.
It’s a good idea to review reports from all three bureaus, as the information they contain may differ. Be thorough, checking each section for inaccuracies, including personal information, account status, and public records.
Step 2: Gather Documentation
Once you identify an error on your credit report, gather any documentation that supports your claim. This may include:
- Copies of account statements
- Proof of payment
- Copies of court records (if dealing with public record errors)
- Letters from creditors acknowledging the error
Having clear evidence makes it easier to substantiate your dispute and improve the chances of a successful resolution.
Step 3: Contact the Credit Reporting Agency
You have the right to dispute inaccuracies directly with the credit reporting agency (Equifax, Experian, or TransUnion). There are three main ways to submit your dispute:
- Online: Each credit bureau allows you to file a dispute through their websites. For example, Experian has a dispute center where you can log in and file directly. This method is usually the fastest and most convenient.
- By Mail: You can also mail a dispute letter to the credit bureau. Be sure to include:
- Your contact information
- A clear description of the error you’re disputing
- The reason why the information is incorrect
- Supporting documentation
- A copy of the credit report with the error highlighted
- For added security, send the letter via certified mail so you can track when it was received.
- By Phone: Some bureaus may allow you to file a dispute by phone, but this option is less common and may not provide the same level of documentation tracking.
Step 4: Dispute the Error with the Creditor
In addition to contacting the credit bureau, you should also file a dispute directly with the creditor or entity that reported the incorrect information. Most creditors have a dispute process for resolving errors. Sending a dispute to both the credit bureau and the creditor ensures that the error is investigated from both ends.
You can use the same documentation and reasoning in your dispute letter to the creditor as you did with the credit bureau. Be sure to keep a copy of all communications for your records.
Step 5: Wait for Investigation Results
The credit bureau is required to investigate your claim within 30 days of receiving your dispute. During the investigation period, the credit bureau will contact the creditor to verify the accuracy of the information you disputed. If the creditor agrees that the information is incorrect, the credit bureau will update your report accordingly.
Once the investigation is complete, the credit bureau will notify you of the results. If your dispute is successful, the error will be corrected, and you’ll receive a copy of your updated credit report. If the bureau does not agree with your dispute, you have the right to add a statement to your report explaining the dispute for future creditors to see.
Step 6: Monitor Your Credit Report
After your dispute is resolved, it’s important to continue monitoring your credit report to ensure no further errors arise. Regularly checking your credit report allows you to catch and address issues early, helping protect your credit score.
In addition, keep copies of all communications, results, and corrected reports in case errors reappear or new issues arise later.
What If the Credit Bureau Refuses to Correct the Error?
If your dispute is denied and you believe the error remains on your report, you have a few options:
- File a Statement of Dispute: You can request that a statement explaining the dispute be included in your credit report, which future creditors will see.
- Submit a Complaint: You can file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state’s attorney general’s office. These agencies may intervene on your behalf if the credit bureau or creditor fails to address the issue.
- Legal Action: In extreme cases, you may consider taking legal action against the credit bureau or creditor for failing to remove the incorrect information. Consulting with a consumer rights attorney can help you determine the best course of action.
Contact Wadhwani & Shanfeld
Disputing an error on your credit report is an essential step in maintaining your financial well-being. Even a small mistake can impact your credit score, affecting your ability to obtain loans, rent apartments, or secure favorable interest rates. By regularly reviewing your credit report, acting quickly to dispute errors, and keeping thorough documentation, you can protect your credit and ensure that your financial history is accurately represented.
If you need assistance disputing an error on your credit report or navigating the credit dispute process, the team at Wadhwani & Shanfeld can help. Contact us today for expert guidance on protecting your financial rights.
Source:
consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-314/
