Credit.com warns that credit report errors can run the gamut from late payments to foreclosure, repossessions and charge-offs. You may discover them in a variety of ways. You may apply for a car loan or credit card and have your application rejected because of delinquent payments, even though you know your bill payment history is perfect. You may order the free copies of your reports to which you are entitled each year and find mistakes. You are allowed to report those errors and have the credit bureaus remove them so they cannot harm your credit score.
Step 1
Write a letter to the credit bureau describing the error. There are three bureaus (Equifax, Experian and TransUnion), and you must write to each one separately if the error appears on more than one report. The Federal Trade Commission (FTC) provides a sample letter in its guide to disputing mistakes (see Resources). Include a credit report copy with the error circled and a detailed explanation of why the information is wrong.
Step 2
Make copies of any financial records that back up your dispute. For example, you can challenge an erroneous late payment by sending a copy of the check or the relevant credit card statement. The FTC warns not to send originals since the information will not be returned to you.
Step 3
Mail your letter and the accompanying proof through certified postal mail with a return receipt requested. The credit bureaus have 30 days to look into the matter and notify you of their findings. Your receipt gives you proof of the delivery date at which the 30-day period starts.
Step 4
Inspect your credit reports after you receive responses from the credit bureaus to ensure the errors have been removed. They may promise to do so, but sometimes they do not follow through. Notify them immediately if a mistake is still appearing after a successful dispute.
Tips and Warnings
- The credit bureaus may encourage you to use their online forms for reporting credit report errors, but the FTC advises against it. The government agency recommends sending a letter because you can track it and this method allows you the ability to enclose documents that back up your dispute.
- MSNBC warns that the FTC discovered that 16 percent of consumer credit reports may have mistakes, while consumer groups believe that number is much higher. Be proactive about finding and reporting errors by ordering free copies of your reports from AnnualCreditReport.com every year. This government website provides them at no cost or obligation under the Fair Credit Reporting Act.
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