Strange accounts can show up on your credit or legitimate accounts can be reported with mistakes. In such cases, you must dispute the error as soon as possible. Credit report mistakes can lower your credit score, which can prohibit you from getting loans, prevent you from opening new accounts or cause you to pay higher interest rates. Your score will go back up once an account that does not belong to you is removed or a negative error is corrected.
Step 1
Gather evidence to support your reasons for disputing the account. You can use credit card statements or printouts of online account information if you are disputing a legitimate account that is being reported with errors. You may need to contact the lender if you do not recognize the account at all. In this case, you may be a victim of identity theft, which you should report to the police so you will have a report to send to the credit bureaus.
Step 2
Write letters to all of the credit bureaus that are reporting the erroneous account. Experian, Equifax and TransUnion are separate companies, so you must send them individual letters. Spell out the account's problem, whether it is an error or an item that doesn't belong to you. Provide as much detail as possible to increase the chance of a successful dispute.
Step 3
Send your dispute letters from the post office via certified mail and ask for proof of delivery. Enclose copies of your documentation to make the credit bureaus' investigations easier. You can also submit a dispute through the bureau websites, but the Federal Trade Commission (FTC) advises against this. It recommends letters because you can send addendums and will have indisputable proof of delivery.
Step 4
Challenge the account directly with the lender if the credit bureaus deny your dispute. They have 1 month to investigate your allegations, and the Fair Credit Reporting Act requires them to fix or remove the disputed item if your challenge is valid. If they rule against you, Credit Infocenter recommends disputing the account directly with the company that provides the information to the bureaus. They must stop reporting it if they cannot give you validation.
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