Disputing Errors on Your Credit Report
Derogatory marks on your credit report can drag your credit scores significantly. And if not remedied quickly, your financial goals can take a big hit. Plus, it can cost you thousands of dollars in interest rates and insurance payments, for example, as well as limit your ability to qualify for certain credit cards or loans. So, if you have an error on your credit report, you’re well within your rights to file a dispute with the credit bureaus. And it’s important to do this quickly to avoid causing even more damage to your credit, making your credit repair journey more difficult. If you want to know how to dispute negative items on your credit report, continue reading.
How to File a Dispute
Under the Fair Credit and Reporting Act, you’re entitled to challenge any items you deem as incorrectly attributed to you, have incorrect information, or are past the statute of limitations. And the credit reporting agency or creditor must respond to the request and verify its accuracy. If they can’t, then the item must be corrected or removed from your credit report. To better understand when and how to file a dispute on negative items in your credit report, let us help break down the process behind them and what you need to do to get started.
Get Your Credit Reports
Before you dive into the dispute process, you must first gather your credit reports and see what’s wrong. You’re entitled to one free credit report per year from each of the three credit bureaus. You can request these at AnnualCreditReport.com. However, due to the COVID-19 pandemic, you may request your reports weekly for the time being.
Get copies of each as one may report an item that the other doesn’t. So, you can have a better view of your credit as a whole with reports from all agencies, as they don’t share information with each other. Before you start the dispute, make sure these copies are current, at least within 60 days, to have the most up-to-date data.
It’s important to regularly check your credit reports for inaccuracies and new derogatory marks, to ensure your finances stay healthy. Credit.com’s free Credit Report Card is updated every 14 days, so you can keep track of your credit score and get graded metrics of your credit profile as a whole. You can see where to improve and what new information is being added to your reports.
How Do Errors Happen?
Mistakes happen, and on your credit reports, these mistakes can be costly. Here are some common errors you may encounter:
- Mixed files- Often, this means that you may share a similar name to another person, causing mix-ups of respective accounts. So, if you’re John A. Smith, you credit file may get mixed up with John B. Smith, for example.
- Re-aged debt- This happens when debt is reassigned to a third-party collector, restarting the start date of your older debt that would’ve otherwise aged off, causing it to reappear on your credit report as new debt.
- Furnisher errors- These often constitute clerical errors, which causes certain inaccurate data to show on your report.
- Identity Theft- If your personal information was compromised, like your social security number, cybercriminals could then open new accounts in your name, which may take expert help to remove.
Understanding these reasons can help you better understand what to look for in your dispute.
Review Your Reports
Once you have your reports and now what to look for, thoroughly check the reports for any inaccuracies. These can include collections you don’t recognize, misreported late payments on accounts that are on-time, and incorrect personal information, like an address or names. Highlight these so when you send your dispute letter and the credit report copies to the creditor or lender, they know what you’re disputing.
Gather Supporting Documents
Now that you’ve pointed out what you’re disputing to the credit bureaus, a crucial next step is to gather any information or documentation that proves the items highlighted are inaccurate. Gather as much evidence as you can to help strengthen your case. For examples of identity theft, send documents related to the fraudulent accounts that you didn’t open or have mismatched personal information. And, if you can, start an investigation with local law enforcement.
Write a Dispute Letter
Now that you have everything you need to file a dispute with the credit reporting agencies, it’s time to write your dispute letter. Essentially, a dispute letter is a formal request to the agencies to investigate an inaccurate item you’ve highlighted. To learn more about dispute letters and how to write it, view our article here: How to Write a Credit Dispute Letter. Send this letter to the bureaus’ addresses or use their online dispute form. However, by mailing, you can have a paper trail to back up your dispute.
Disputing with Lenders
You can report inaccuracies to the credit bureaus, but sometimes, you may have to work directly with the creditor, like the credit card issuer or lender. The process for this is the same. However, you would have to send your letter and documents to their dispute department or use their own dispute forms, if applicable. Search for the individual creditors for their information and find where to send disputes. It may also help to start your dispute process directly with the creditor as well as the bureaus.
Need Professional Help Disputing Credit Report Errors?
Filing a dispute can be a stressful process, so perhaps enlisting the help of credit repair professionals can help. If you find a lot of inaccuracies, need assistance researching how to best file a dispute, and want someone on your side to follow up on your letters, you can work with a reputable agency. Lexington Law and CreditRepair.com are experienced agencies that can take the stress out of the credit report dispute process. You can have full-time coverage of your disputes and get up-to-date information on your progress.
Keep Monitoring Your Credit
Just removing inaccuracies on your credit report isn’t enough to ensure your credit score stays healthy. It’s important to actively monitor your credit, so any new information, collections, or new accounts can be dealt with promptly. ExtraCredit is the comprehensive credit monitoring solution you need to stay on top of your credit. With five key features, you’re sure to be covered in every aspect of your credit. When it comes to taking care of your credit and personal information, here’s what three features can do:
- Track It: See the scores that lender see, with 28 FICO scores, advanced credit monitoring and alerts, and your graded credit report card
- Guard It: Protect your valuable personal information with $1 million ID theft insurance, proactive security alerts, and dark web monitoring and scans.
- Restore It: Need help with credit repair? Get an exclusive discount to a leader in credit repair, and fix your credit with the help of proven strategies and dispute help.
