How to Dispute an Error on Your Credit Report

Mistakes on credit reports are more common than many people think: a payment marked late that you made on time, a debt you already paid, or an account that isn’t yours at all. Errors like these can lower your score and cost you money. The good news is that fixing them is your right, and it’s free.

Step 1: Get your reports and find the errors

Get your free reports from Equifax, Experian and TransUnion at AnnualCreditReport.com, which the FTC says lets you check each one weekly. Each bureau’s report can be different, so check all three.

Common errors to look for:

• Accounts you didn’t open (a possible sign of identity theft).
• Late payments you made on time.
• Debts you paid or settled still showing a balance.
• The same debt listed more than once, for example by both the original creditor and a collector with a balance.
• Wrong personal information, such as names or addresses you’ve never used.
• Medical collections that are paid or under $500, which the credit bureaus’ current policies say shouldn’t appear. See medical debt in collections.
• Old negative items that should have aged off. Our guide on how to read your credit report explains each section.

Step 2: Gather your proof

Collect copies, never originals, of anything that supports your case: bank statements, payment confirmations, letters from the creditor, or a settlement agreement. Mark the error on a copy of your report.

Step 3: Dispute with the credit bureau

Contact each bureau that shows the error. You can usually dispute online, by mail or by phone. According to the FTC, your dispute should include:

• Your contact information.
• Each mistake you’re disputing and why it’s wrong.
• A request to correct or remove it.
• Copies of supporting documents.

The FTC has a sample dispute letter you can adapt. If you mail it, use certified mail with a return receipt and keep copies of everything.

Step 4: Dispute with the company that reported it

You can also dispute directly with the business that supplied the information, such as your card company, lender or collector. Ask it to correct the information it sends to the bureaus.

What happens next

According to the FTC:

• The bureau generally has 30 days to investigate. It can take up to 45 days in some cases, such as when you send more information during the investigation.
• The bureau forwards your evidence to the company that reported the information, which must investigate and report back.
• The bureau must send you the results in writing, and a free copy of your report if the dispute leads to a change.
• If the bureau decides a dispute is frivolous, it must tell you why.

If the dispute doesn’t fix it

• Add more evidence and dispute again.
• Ask for a statement of dispute to be added to your file, explaining your side.
• Submit a complaint to the CFPB, which forwards complaints to the company and asks for a response.
• Talk to a consumer attorney if you believe a bureau or company isn’t following the law.

If it’s identity theft

If accounts on your report aren’t yours, go to IdentityTheft.gov for a personal recovery plan. You may also want to place a fraud alert or a credit freeze.

A word about “credit repair” companies

You don’t need to pay anyone to dispute errors. Everything a credit repair company can legally do, you can do yourself for free. No one can legally remove accurate negative information. The CFPB also notes that items removed through disputes can come back once they’re verified. Be wary of any company that promises a quick fix.

The bottom line

If something on your report is wrong, dispute it with the bureau and the company that reported it, include your proof, and keep records. It costs nothing and can make a real difference. To see how accurate negative items affect your score over time, read how debt relief affects your credit score.

Sources: FTC: disputing errors on your credit reports · FTC: sample dispute letter · FTC: free credit reports · CFPB: credit counseling, debt settlement, consolidation and credit repair