Virtually everyone who uses credit in the United States has three credit reports. Equifax, Experian and TransUnion are credit bureaus that collect demographic and financial information, and use it in their reports. Sometimes items in the reports are wrong or so old that they should no longer show up. U.S. Public Interest Research Groups warn an average of one in four reports has mistakes that can hurt your credit score. The Fair Credit Reporting Act gives you the right to dispute the errors.
Step 1
Highlight all of the items you wish to dispute on your credit report. Use a copy instead of than the original report since you will send it to the credit bureau. Itemize your dispute by breaking down each individual item instead of than challenging the entire report.
Step 2
Write a letter explaining that you are filing a dispute under the provisions of the FCRA, list all the incorrect items and explain why they are incorrect. Request that all the designated items be removed under the terms of the FCRA. This will indicate to the bureau you aware of your legal rights.
Step 3
Put together a packet that includes your letter, a highlighted copy of your credit report and copies of any proof to back up your disputes. You could include contracts, receipts, statements or canceled checks that show the correct information, according to the Federal Trade Commission.
Step 4
Mail the packet using certified mail with a return receipt requested, the FTC recommends. This will give you proof of the date you sent it and when the credit bureau received your information. The FCRA allows the bureau up to 45 days to complete its inquiry and notify you of the results.
Step 5
File a statement with the credit bureau explaining your side of the dispute for any items it refuses to remove. Items that cannot be validated must be pulled from the report, but the bureau may claim to have confirmed the information. The statement lets you give your side if you still disagree, according to the Experian credit bureau.
Tips and Warnings
- The FCRA gives you the right to ask the credit bureau to send a corrected copy of your credit report to anyone who requested it in the past six months once your dispute has been resolved. This might allow you to open an account if a lender previously turned down based on incorrect entries on your report.
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