How to Dispute Errors on Your Credit Report
Your credit report plays a critical role in determining your financial health. Errors on your report can lower your credit score and affect your ability to secure loans, credit cards, and even employment. If you find mistakes on your credit report, it’s important to dispute them as soon as possible.
Why Credit Report Errors Matter
Even small mistakes on your credit report can have a significant impact on your credit score. Incorrect information could result in:
- Higher interest rates on loans and credit cards
- Denials for new credit applications
- Potential identity theft concerns
Step-by-Step Guide to Disputing Errors
Step 1: Get Your Credit Report
You’re entitled to a free credit report every 12 months from each of the three major credit bureaus:
- AnnualCreditReport.com (Official site for free reports)
- Experian (experian.com)
- Equifax (equifax.com)
- TransUnion (transunion.com)
Review each report for discrepancies.
Step 2: Identify Errors
Common errors include:
- Incorrect personal information (name, address, Social Security number)
- Accounts you didn’t open (signs of identity theft)
- Incorrect account balances
- Payments marked late when they were paid on time
- Old debts that should have been removed
Step 3: Gather Supporting Documents
To strengthen your dispute, collect documents that prove the error, such as:
- Bank statements
- Payment confirmations
- Letters from lenders
- Identity verification documents
Step 4: File a Dispute
You can dispute errors online, by mail, or by phone with each credit bureau:
- Experian: Online Dispute Portal
- Equifax: Online Dispute Portal
- TransUnion: Online Dispute Portal
Step 5: Follow Up on Your Dispute
The credit bureau has 30 days to investigate your claim. You will receive a response stating whether the dispute was accepted or denied.
What to Do If Your Dispute Is Denied
If the credit bureau refuses to remove the error, you can:
- Request a statement of explanation be added to your report
- Dispute the error again with additional supporting documents
- File a complaint with the Consumer Financial Protection Bureau (CFPB)
Preventing Future Errors
To avoid future credit report errors, take these steps:
- Check your credit report at least once a year
- Monitor your accounts for fraudulent activity
- Set up alerts with a credit monitoring service
Final Thoughts
Disputing credit report errors is an important step in maintaining good credit. By taking the time to review your report and correct mistakes, you can protect your financial future and improve your credit score.