Credit reports are wrong more often than most people think. A balance that was paid off, a late payment that never happened, an account that belongs to someone else: any of these can cost you a loan approval or a lower interest rate. The good news is that federal law gives you a clear, free process to fix them.
Step 1: Get all three credit reports
Each bureau keeps its own file, and errors often appear on one report but not the others. You can get free reports from Equifax, Experian and TransUnion at AnnualCreditReport.com, the only site authorized by federal law for free reports.
Step 2: Review every account line by line
Look beyond the obvious. Common errors include:
- Accounts you never opened, which can signal identity theft
- Balances that don’t match your statements
- Late payments on months you paid on time
- The same debt listed twice, often once by the original creditor and once by a collector
- A date of first delinquency that has been moved forward, which keeps the item on your report longer
- Paid or settled accounts still showing a balance
Step 3: Gather your proof
A dispute backed by documents is far stronger than one that simply says “not mine.” Collect bank statements, payment confirmations, settlement letters, identity theft reports or anything else that shows the information is wrong.
Step 4: Send a written dispute to each bureau
Explain specifically what is inaccurate and why, and ask for it to be corrected or deleted. Include a copy of your ID, proof of address and your supporting documents. Sending disputes by certified mail gives you proof of delivery and a clear start date.
Step 5: Know the deadlines
Under Section 611 of the FCRA, a credit bureau generally has 30 days to investigate your dispute. That can extend to 45 days in some cases, such as when you send additional information during the investigation. The bureau must forward your dispute to the company that reported the information, and send you the results in writing when it’s done.
Step 6: If the bureau “verifies” the error
A verified result doesn’t always mean a real investigation took place. You can ask the bureau for a description of how it verified the information, dispute directly with the creditor or collector, and file a complaint with the Consumer Financial Protection Bureau. If a bureau or creditor keeps reporting information you can prove is wrong, you may have a claim under the FCRA.
The honest bottom line
Disputes work on information that is inaccurate, incomplete or unverifiable. They don’t work on accurate negative history, and no company can legally promise otherwise. If you’d rather have experts review your report and handle the process, Aunify’s free credit analysis will tell you exactly which items are worth disputing.