The Complete Guide to Credit Report Disputes

Your credit report plays a huge role in your financial life. Lenders use the information in your credit report to decide whether to approve you for credit cards, loans, mortgages, and more. They also use your credit report to determine what interest rates to offer you.

Inaccurate negative information on your credit report can damage your credit and make borrowing more expensive. That‘s why it‘s so important to dispute and remove any errors. This complete guide will provide you with everything you need to know about disputing your credit report.

Why Should You Dispute Credit Report Errors?

Here are some key reasons why you’ll want to dispute any inaccuracies on your credit reports:

• Lower Interest Rates: Lenders check your credit report and score when deciding what interest rate to offer you. Correcting errors can help boost your credit score so you pay lower rates when borrowing money. This saves you money. According to a 2021 Consumer Federation of America report, fixing relatively minor errors like incorrect account statuses or payment history details can lower interest paid on a hypothetical 5-year, $20,000 installment loan by up to $5,000.

• Increase Approval Odds: Mistakes on your credit reports can make lenders view you as a riskier borrower. Getting errors removed improves your chances of approval for financing. A Federal Trade Commission study found 26% of participants had a credit application rejected when errors were inserted into their credit reports. After disputing the errors, participants saw approval rates return to normal.

• Prevent Denials: If your credit report contains serious errors like false bankruptcies or tax liens, you could be denied new credit or have applications rejected. Disputing these right away is crucial. A 2022 report by the Consumer Financial Protection Bureau revealed 34% of survey respondents were completely denied new financing after credit report errors unfairly lowered their scores.

• Rentals/Employment: Landlords and employers also often check credit reports. According to a 2021 TransUnion survey, 25% of renters had their rental applications rejected due to credit report errors. And a 2018 Harvard Business Review study found 60% of employers check credit reports to screen job applicants. You don’t want mistakes on your credit history impacting your ability to rent an apartment or get hired.

• Better Insurance Rates: Insurers will check your credit before issuing policies. Errors can contribute to higher premiums. Fixing them might lower what you pay. For example, a 2021 NerdWallet analysis showed drivers with very good credit save $626 per year on car insurance compared to those with poor credit. Disputing all errors helps boost your credit standing.

Correcting all inaccuracies helps ensure you are represented accurately to lenders and other companies checking your credit. This protects your credit standing and borrowing power.

How to Check Your Credit Reports for Errors

To dispute items on your credit reports, you first need to check your reports so you know what might need fixing. Under federal law, you are entitled to one free copy of your credit report from each of the three major credit bureaus every 12 months.

You can obtain these free reports through AnnualCreditReport.com. Because of COVID-19, you currently can access a new free report from each bureau every week. Make sure you check reports from Equifax, Experian, and TransUnion for a complete review.

When checking your credit reports, look closely for any inaccuracies including:

• Incorrect personal information: If your name, current or past address, birth date or Social Security number are wrong, that’s a mistake that should be disputed immediately. Even small errors in things like spelling of your street address or name suffix (Sr., Jr., etc.) should be corrected.

• Accounts that don’t belong to you: If accounts that don‘t belong to you show up on your credit report, it‘s a sign of potential identity theft and needs to be addressed. Make note of any unknown accounts opened recently.

• Wrong account statuses: Accounts should show the correct status such as open, closed, paid as agreed, or charged-off. If statuses are wrong, dispute this. For example, if a paid account shows up as past-due, this would be inaccurate.

• Inaccurate account details: Account details like credit limits, balances, and payment histories need to be reported accurately. Dispute anything incorrect. One common error is when the reported balance is higher than the actual balance.

• Duplicate listings: The same account or debt showing multiple times is a dispute-worthy error. Collectors sometimes report debts more than once.

• Old or outdated information: Most negative incidents can‘t remain on your credit report for more than 7 years. Dispute anything older, except for bankruptcies. If a settled collection from 2014 still appears, it should be removed.

• Unverifiable information: If the credit bureaus can‘t verify an account‘s accuracy, they must remove it if you dispute it. A lack of details like the date a collection originated can make information unverifiable.

Make note of anything that appears wrong or suspicious so you can dispute it with the credit bureaus. Checking all three reports allows you to compare and detect inconsistencies. Ongoing monitoring every 4-6 months helps you catch errors early before they do more damage.

The Credit Report Dispute Process

The Fair Credit Reporting Act requires credit bureaus to investigate disputes within 30 days. They must remove or correct information found to be inaccurate or incomplete. Here are the key steps in the dispute process:

1. Initiate the dispute with each credit bureau. If the error appears at multiple bureaus, you’ll need to dispute it with each one that’s reporting it incorrectly. Provide your identifying information and note each disputed item.

2. The credit bureaus launch investigations. The credit bureau has 30 days to investigate by contacting the company that provided the disputed details.

3. Information found to be inaccurate must be removed or corrected. If an item can’t be verified, the credit bureau must delete it. If found to be accurate but incomplete, it must be updated. For instance, if you prove a collection account isn’t yours, it would be deleted. If you show a late payment is reported on the wrong date, they must correct it.

4. You‘ll receive written results of the investigation. The credit bureau must let you know the results including if anything was changed or deleted. You’ll receive notification by mail and/or through an online dispute portal.

5. You can add a statement to your credit report if disputes are rejected. If you still disagree with the results, you can request that the credit bureau adds a statement to your file noting that you dispute an item. Be sure to take advantage of this option, as some inquiries take multiple rounds before achieving resolution.

This process can take 30-90 days from start to finish. It‘s important to check your credit reports again after disputes to ensure changes were made as expected. If not, you may need to open additional disputes.

How to Initiate Credit Report Disputes

You have three options to initiate disputes – online, by mail, or over the phone. Here are the details on each dispute method:

• Online: The quickest way to dispute is online via the credit bureaus’ dispute portals. You‘ll need to provide information that verifies your identity. Then note each item to dispute and details on why you are disputing it. Attach images of any supporting documents.

• By Mail: To mail a dispute letter, download a dispute form from each credit bureau or send a letter (sample dispute letter template) listing the disputed items and why. Include copies of supporting documents. Send the letters certified mail with return receipts.

• By Phone: You can call each credit bureau to dispute over the phone. Be prepared to provide personal information and details about what you are disputing. Note the representative’s name, ID number, and time/date of call. Ask for reference or tracking numbers. Follow up each call by mailing a dispute summary letter.

Keep records of your dispute including the dispute date, method, tracking details, and info from the credit bureau. If disputes are not handled properly, these records will help support any complaints you may file.

What to Include When Disputing Credit Report Errors

Whether you dispute online, by phone, or through the mail, providing strong supporting information is key. Here are important things that you should include with credit disputes when possible:

• Identifying information: Name, current and past addresses, Social Security number, and date of birth will help ensure the credit bureau can locate your file. Double check everything is exactly as it appears on your report.

• Account numbers: The specific account number for any disputed accounts ensures the right item will be investigated. Make sure you have the right account number, not just the last four digits.

• Specific dispute reasons: Detail exactly why you are disputing each item and explain what is inaccurate. Attach a copy of the report highlighting errors. The more precise the better.

• Relevant documentation: Include copies of statements, letters, receipts, court documents, or anything else that proves the inaccuracy of disputed items. See below for examples of proof.

• Request for removal: Ask for disputed items to be removed or corrected as allowed under the Fair Credit Reporting Act. Directly state that you want the item deleted or updated.

Thorough dispute letters with ample supporting documentation give you the best shot at getting the credit bureaus to remove incorrect items. Keep records of what you send.

Goodwill Letters to Creditors

If you have legitimate negative information that is accurate but want to request its removal for fairness reasons, you can contact the creditor directly and request a “goodwill deletion.” This involves asking them to remove an item, even though reporting it would be justified and legal.

This goodwill letter process is different from formal credit report disputes. Here are some tips on goodwill letters:

• Make removal requests in writing and send via certified mail with delivery confirmation. Email may also work in some cases.

• Politely explain why the negative mark is unfair and how its removal would help you recover from hardship. Provide specifics on how the mark impacts your credit score.

• Note if you’ve been a long-time loyal customer with a solid payment history. Emphasize this relationship.

• Include proof of financial recovery like new account statements showing responsible use. Evidence is important.

• Follow up with phone calls to discuss the requests and get confirmation of receipt. Take notes on who you speak with.

Goodwill deletions are granted on a purely discretionary basis. They tend to be more successful with credit cards (about 50% success rate) and loans when you have a strong relationship with the lender. But it’s possible to get late payments deleted even with collections accounts in limited cases. Repeat requests may be needed.

Special Options to Dispute Medical and Identity Theft Accounts

Medical debt and identity theft can create credit report challenges that require special dispute processes. Here’s how these work:

Medical Debt Disputes

For medical debt, you can request removal by contacting the provider or collection agency and explaining the funds to cover services are protected by insurance or Medicaid. Provide evidence the insurer is settling up delayed payments directly. Reference protections under the No Surprises Act.

You can also dispute based on billing disputes related to charges. Include any documentation related to negotiating the amounts owed.

The credit bureaus now must remove all paid medical collections and will stop adding unpaid medical debts of under $500 to credit reports starting in 2024.

Identity Theft Disputes

If you‘re disputing accounts opened through identity theft, you‘ll need to file police reports and FTC identity theft reports. Provide the credit bureaus with your reports, proof of identity (ID card, social security card, passport, etc.), and details on the accounts opened fraudulently.

Ask the bureaus to block identified fraudulent accounts and inquiries. By law, these cannot appear on your report. Make sure to monitor your reports regularly and continue disputing to ensure stolen account information does not reappear.

Signs that identity theft may be occurring include:

• New credit accounts you didn’t open
• Inquiries from companies you didn’t contact
• Bills for products/services you didn’t use
• Calls from debt collectors about unknown debts

Report identity theft immediately to contain damages. The sooner you act, the easier recovery will be.

Strategies to Deal with Persistent Credit Report Errors

In some cases, you may find credit report errors continue to appear even after disputes. Here are some strategies to address persistent credit report inaccuracies:

• File another dispute focusing just on the item again. Provide any new evidence available. Attach previous dispute letters/docs.

• Submit complaints to the CFPB detailing the issues to prompt additional investigation.

• Contact the furnisher (the company that provided the information) directly to request correction. Submit dispute details.

• Ask the credit bureau for an escalated dispute review by a supervisor. Some errors require manual reviews.

• Provide an updated statement each time the error reappears noting you still contest the item.

• Consult a credit repair attorney about legal options to compel removal of incorrect data. Legal action can push the bureaus.

Staying persistent and diligent can help get your credit report corrected. Maintain thorough records and copies of all disputes, responses and evidence so you can demonstrate a history of errors.

Improving Your Credit After Errors are Removed

When you’ve had inaccuracies removed through disputes, here are some steps to take afterward that can help rebuild your credit:

• Obtain new credit reports to make sure errors stay off your records. Monitor reports continuously to watch for any new issues.

• Ask for your credit score to be re-calculated based on cleaned-up reports. This should improve your score. Concentrate on improving your credit utilization ratio.

• Get new credit cards or loans to add positive information and decrease credit use ratios. Make all payments on time. Set up autopay to avoid late payments.

• Limit new credit applications and inquiries which can lower scores temporarily. Only apply for needed credit, spacing out applications by 6 months.

• Build credit history by responsibly using new accounts over time. Develop long-tenured accounts in good standing. Let your score gradually recover.

Disputing all credit report errors is the essential first step. Proactively rebuilding credit after inaccurate items are removed will help you maximally benefit and bounce back score-wise.

Credit Report Disputes FAQ

To wrap up this complete dispute guide, here are answers to some frequently asked questions about disputing credit report errors:

Can I dispute a credit report online?

Yes, the easiest way to dispute is through the credit bureaus’ online dispute portals. These allow you to initiate disputes 24/7. You‘ll need to provide information to confirm your identity.

How many times can I dispute a credit report?

You can dispute an error as many times as needed until it gets removed or resolved accurately. If errors reappear after removal, keep disputing. The credit bureaus are required to investigate each new dispute submission. Persistence pays off.

How far back can items be removed from a credit report?

Most negative items can stay on your credit report for up to 7 years, or 10 years for Chapter 7 bankruptcies. Older items beyond these limits can be disputed for removal. There are no limits on requesting removal of accounts resulting from identity theft or inaccuracies.

Can I dispute a credit report for free?

Yes, credit bureaus cannot charge fees for investigating disputes. Free options include disputing online, by mail, or phone. Third-party credit repair companies charge fees for disputes but are not needed. Save money and do it yourself.

When is the best time to dispute a credit report?

Dispute credit errors as soon as you discover them. The faster inaccurate items are removed, the sooner your score can recover. Avoid applying for new credit until after resolving disputes since new inquiries can temporarily lower your score.

Does disputing hurt your credit?

Disputes alone don‘t directly hurt your credit. However, removal of positive inaccurate accounts could lower scores slightly until rebuilt. Disputing and removing negative items should help your credit. Monitor changes to your score.

The Bottom Line

Checking your credit reports frequently and disputing all inaccuracies is crucial for protecting your credit standing and qualifications for new financing. This guide provides a thorough overview of the complete dispute process so you can effectively correct any errors.

Getting legitimate mistakes removed can strengthen your credit profile and boost your approval odds and financing offers. With persistence and diligent record-keeping, you can achieve successful dispute results. Don’t let any errors go – make sure your credit history tells your financial story accurately!