Disputing negative information that's damaged your credit history can go a long way to raising your credit score. The Fair Credit Reporting Act establishes a process by which you can file a dispute with a consumer reporting agency (CRA) such as Experian, Equifax and TransUnion. The act requires the CRA to investigate your dispute and provide written proof of its findings, usually within 30 days. If you want to dispute your credit report and win, there are a few key factors that can help expedite the dispute process, as well as sway a CRA's decision in your favor.
Win A Credit Report Dispute
Step 1
Obtain a copy of your credit report from one of the major credit reporting companies such as Experian, Equifax and TransUnion. First things first: Don't pay a credit repair service to perform the very same services that you can do yourself for no cost at all. If your credit report has numerous blemishes, companies that guarantee they can erase bad credit "100 percent guaranteed" can tempt you into procuring their services--but the Federal Trade Commission notes that these are almost always scams. The financial advisers at Credit.com indicate that a typical ploy used by credit repair companies is to dispute accurate negative information on your credit reports--in other words, information that belongs there by law. Your credit reports remain unchanged, and the credit repair company pockets your cash. If you want to dispute your credit report and win, rely on your own best judgment and make sure to closely inspect your credit report for negative information and errors.
Step 2
Make sure that the negative information in your credit report is indeed erroneous. Errors and inaccuracies can show up on your report for a number of reasons. Sometimes this may be due to simple clerical error, but negative information can also appear if you were the victim of identity theft. Sometimes, negative items that should have expired endure on your report longer than necessary. For example, charged-off accounts and those that were handed over to a collections agency should expire (fall off your report) after seven years (although other items, such as bankruptcy, can endure for up to 10, and in some cases, negative information such as an unpaid tax lien can remain on your credit report indefinitely). CRAs are under no obligation to investigate disputes they consider "frivolous." To win a credit report dispute, offer the agency substantial proof that the negative information in your history is legitimately in error.
Step 3
Put it down in writing. Although all three CRAs have online presences that permit you to file a dispute over the Internet, the Federal Trade Commission indicates that it's best to prepare your dispute in writing and mail it to the CRA in question by certified mail, return receipt requested. This allows you to send copies of your credit report with the negative items highlighted, as well as copies of documentation that supports your dispute. You'll also have proof that the CRA has received your correspondence. For a sample dispute letter and the contact information for all three CRAs, see the Resources links below.
Step 4
Provide sufficient proof to the CRAs. To dispute a credit report and emerge victorious, it's important to have supporting documentation in hand that indicates a legitimate need to remove negative information. For example, before you dispute a history of slow- or no-pays, it may be helpful to obtain copies of canceled checks that reflects a timely payment history. Before trying to remove an expired tax lien from your report, obtain documentation from an authoritative agency (such as the Internal Revenue Service or your county's tax assessor/collector) indicating that the tax lien was released more than seven years ago.
Step 5
Acknowledge when only the passage of time can heal your wounded credit history. The federal Fair Credit Reporting Act entitles you to a dispute process. But the same act forbids CRAs from removing information that reflects poorly on you if it is both accurate and reported in a timely manner. (To see when specific types of negative records will drop off of your credit report, see the Resources link below.)
Things You'll Need
- Copies of your credit reports
- Copies of supporting documentation
- Computer & printer (alternately, pen and paper)
- Envelope(s)
- Money to pay the cost of certified mail service
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