If you notice an error on your credit report, it's essential to get it corrected as quickly as possible.
A Consumer Reports study found that 44% of Americans who reviewed their credit reports found mistakes. Errors can lower your credit score, affect your chances of getting approved for a loan or line of credit or result in less favorable loan terms.
Your credit score can also impact whether you're approved for an apartment or get hired for a job.
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Review your credit reports
Three main credit bureaus gather information on your financial history: Experian, TransUnion and Equifax. A lender may use any of them, so it's important to review all three.
If you have negative information on a report — like defaulted loans or a bankruptcy— there's no way to magically erase it. Incorrect or outdated information, however, can and should be removed as soon as possible.
According to the Consumer Financial Protection Bureau, common errors on credit reports include:
- Accounts or loans that have been paid off but appear unpaid
- Individual loans listed multiple times
- Debts that are incorrectly reported in collections
- Incorrect current balance or credit limit
- Misspelled names, wrong addresses or incorrect birth dates
- Mixed files: Information from someone with a similar name or Social Security number
- Fraudulent accounts are listed as a result of identity theft
- Closed accounts reported as open
- You're shown as the owner of an account when you're just an authorized user
You can check your credit reports for free once a year by visiting Annualcreditreport.com. A number of credit card companies also allow cardholders to review credit information, although it may not be as thorough.
Before you contact the credit bureaus to report an error, make sure you've got a legitimate claim. There's a chance you may initially think a late payment is a mistake, but it is correct.
Dispute errors with the credit bureaus
Once you have confirmed that a discrepancy on your credit report is an error, gather any supporting documents and information that can assist your dispute, such as credit card statements, bank statements, emails or letters.
This information will help support your dispute and may speed up the process.
You can file a dispute by mail, phone or online. If you decide to dispute by mail, send a detailed letter to the credit bureaus and attach copies of any supporting documents.
The FTC has a sample letter you can use and the CFPB recommends using certified mail with return receipt requested so you have a record that your letter was received.
Equifax
Online: equifax.com/personal/credit-report-services/credit-dispute/
By phone: 866-349-5191
By mail: Download the FTC dispute form and send it to:
Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30348
Experian
Online: experian.com/disputes/main.html
By phone: 888-397-3742
By mail: Download the dispute form and mail it to
Experian
P.O. Box 4500
Allen, TX 75013
TransUnion
Online: dispute.transunion.com
By phone: 800-916-8800
By mail: Download the dispute form and mail it to:
TransUnion LLC
Consumer Dispute Center
P.O. Box 2000
Chester, PA 19016
You may also want to dispute the error with the company that provided the information to the credit bureau, known as the "data furnished." This may be a credit card issuer, bank, property management company or other institution. You can send a letter to the furnisher or contact them by phone.
Work with a credit repair company
Credit repair companies can contact the three main credit bureaus on your behalf to remove inaccurate or outdated negative information from your credit reports. They can also work with banks, debt collectors and other financial institutions.
While you can do this on your own for free, it can be daunting and time-consuming. For users of credit repair companies, having a professional do the heavy lifting is worth the expense —especially when the result is a major increase in your credit score.
Before signing up for any credit repair service, make sure it follows the Credit Repair Organizations Act (CROA), which regulates how these companies can operate.
Review the results of the dispute
The timeline for resolving a dispute varies, but generally credit bureaus have to respond to your dispute within 30 days. It may take several months to a year for the error to be removed from the relevant reports, however.
If the credit bureau agrees
The credit bureau will provide the results in writing and a free copy of your credit report, if the dispute results in a change. In addition, you can request the bureau to send notice of any corrections to anyone who received your credit report in the past six months.
Legally, the credit bureau has to report the issue to the other two bureaus.
If the credit bureau disagrees
The credit bureau may deny your dispute for various reasons, such as your claim is deemed frivolous or the information included in your statement is accurate. If so, the bureau can choose not to investigate the dispute, but it must send you a notice within five days of the decision.
If your dispute is denied, you can still file a written statement of dispute that can be included in your credit report. You can ask the credit bureau to provide this statement to anyone who received a copy of your report, but there may be a fee.
If you believe the credit bureau failed to take reasonable action to resolve your dispute, you can also file a complaint with the FTC or the CFPB.
Check your credit reports
It can take time for any updates to your credit report to appear, so be patient. Regularly monitor your credit reports to ensure the change is made.
If you don't see the corrections within a few months, contact the credit bureaus and furnisher to verify the information was updated.
Credit report FAQs
What should I do if someone is using my personal information?
If you believe you are the victim of identity theft, report it to identityTheft.gov. You should also review your credit reports with the three main credit bureaus for errors or outdated information.
How do I get a copy of my credit report?
You can get a free copy of your credit report each year from each of the three major credit bureaus by visiting AnnualCreditReport.com or checking with specialty consumer reporting companies. Many credit card companies also provide credit information, although it may not present the full picture of your credit history.
What's included in my credit report?
There may be variations from one bureau to another, but a credit report will typically contain information about your financial accounts — including the date opened, credit limit or loan amount, balance, monthly payments and payment pattern during the past several years. Any bankruptcies or negative judgments will also be noted, as will any statements of dispute you may have filed.
Your name, current and previous addresses, phone number, Social Security number, date of birth, and current and previous employers. You can also find the names of anyone who has obtained a copy of your credit report.
Credit bureaus do not gather data about race, religion, medical history, sexual orientation, political affiliation, criminal record or any other information that is unrelated to credit.
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