How to dispute errors on your credit report

Disputing an error on your credit report can seem like a confusing task. Luckily, the process is pretty straightforward. As long as you follow the correct steps outlined here, the bureau must respond to your dispute in a timely manner (set forth by federal law) to resolve the problem.

The first step to disputing an error on your credit report is to actually find the error. This is why it is so important to make a habit of regularly combing through your credit reports to find errors and inconsistencies. In fact, an estimated 20-25% of U.S. consumers find errors on their credit reports that may affect their credit score or eligbility for loans or lines of credit.

Any error or inaccuracy, no matter how small, is worth disputing. The Fair Credit Reporting Act (FCRA) dictates that any information reported by a Credit Reporting Agency (such as TransUnion, Experian, or Equifax) must be 100% accurate and verifiable. If you find any erroneous details, such as an incorrect balance, date, or payment history, then the credit bureau must either fix the inaccuracy or remove the item from your credit report.

Any error on your credit report could potentially lower your credit score, making it more difficult for you to get a loan or be approved for the best terms and interest rates. This is why it's always worth your time to dispute any errors you find.

The only way to guarantee these errors get removed is to discover them and file a dispute.

Once you believe you've found a potential error on your credit report, it is time to prepare a dispute letter. Note which of the major bureaus reports include the mistaken information. Experian, Equifax, and Transunion all allow you to dispute inaccuracies directly with them via mail or online -- however the best results will always be obtained by writing a physical letter and sending it in the mail.

You can find a number of sample dispute letters online, but the basics of a any dispute letter will include:

Make sure you keep a copy of the letter and everything included in it for your records. You may need to reference these letters later on in the process.

It is also worth noting that credit repair software can help you generate dispute letters with almost no effort. Additionally, the dispute letters are professionally written and designed to maximize the chances of a positive result (either the error gets fixed or the offending account is removed from your credit report). DisputeBee offers credit repair software that does exactly this. This same software is even used by professional credit repair companies to dispute items on behalf of their clients. Now any consumer can have access to this specialized software and dispute items like a professional.

You can submit a dispute online at the respective credit bureaus website, or you can mail a physical letter of the dispute to their dispute centers. Again, we recommend sending physical mail. Here are the mailing addresses for each credit bureau:

Equifax – PO Box 740256, Atlanta, GA 30374-0256

Experian – PO Box 4500, Allen, TX 75013

TransUnion LLC Consumer Dispute Center – PO Box 2000, Chester, PA 19016

If you will be sending in your dispute by mail, it is generally worth the extra cost to use certified mail, which requires a signature and provides a return receipt. This helps ensure your dispute will be appropriately handled by the credit bureau.

It's also important to remember to include a copy of one document to verify your address, and one document to verify your identity. The most common documents to use would be a photo of a utility bill with your current address, and a photo of your driver's license. Without these documents, the credit bureaus will be unable to process your dispute.

In most cases, it does help to contact the lender or furnisher that reported the mistaken data to the credit bureau.

You can even go directly to the lender first, asking them to remove the mistaken information before filing a dispute with the bureau. This may save you time if it's a simple mistake by the furnisher.

With that said, there are some cases in which this will not help. For instance, with an identity related error, the bureau is the only one you'll need to talk to. In these cases, the error will likely be rectified quickly, as the bureau only has to work with themselves to solve the error.

After you send your dispute in the mail, the bureau has 30 days after receiving it to investigate the disputed claim. They use this time to contact the agency that furnished the information, and must then report the results of their investigation back to you within 5 days of completion.

If you also dispute information directly with a lender or other financial institution, that furnisher must also report the results of their investigation back to you within 30 days. However, if the furnisher stands by their information and says the dispute is invalid, the report won't be updated and the information will not be removed.

You might also get an unexpected response. For example, a credit bureau or furnisher may claim that your dispute is frivolous. This generally means you have submitted an incorrect or incomplete dispute. It may also show up if you have filed multiple claims for the same disputed information without providing any new proof or supporting documentation to back up your dispute.

If the credit bureau decides the dispute is frivolous, it can communicate this to you within 5 days, along with its reasoning behind the decision. From there, they are not obligated to investigate the claim further unless you request additional information or provide further supporting information or documentation.

If the original claim was labeled frivolous, search for other inconsistencies or mistakes in your dispute. If you believe the "frivolous" labeling of your dispute is inaccurate, then send a followup letter explaining your reasoning. You can always resubmit your dispute with updated information.

After submitting your dispute and hearing back from the furnisher or credit bureau, review the results of their investigation. The bureau must include the results of their investigation in their response to you – along with a free copy of your credit report if the investigation results in a change your credit report. The results will also include the name and contact information of the furnisher who provided the incorrect data.

If a furnisher has decided to continue reporting a disputed item, they must notify the credit bureau involved that you have disputed the information. If the disputed information is inaccurate, the furnisher must then ask the bureau to remove the item. The furnisher must also notify any other bureaus it has sent this incorrect information to in order to have it removed.

If the furnisher decides the disputed information is still accurate, you can optionally request that the bureau include a statement on your file explaining the details of the dispute.

Once the dispute is completed or resolved, check your updated credit report to verify that the mistaken details were actually corrected. Keep in mind that updates to your credit report may take some time to appear, depending on the bureau's update cycle or how often the furnisher reports new data to the bureaus.

If the information does not get updated within a few months, then contact both the credit bureau as well as the furnisher to verify the account is being updated and the corrected information is being sent to the credit bureaus.

Just like most other things in the world of credit, disputing an error on your credit report requires discipline, diligence, and research. It is important to review your credit report regularly and find any errors as soon as possible. As soon as you find errors, dispute these inaccuracies immediately.

Even seemingly small errors may add up over time and make it difficult for you to participate in the financial world of credit and loans. The dispute process is straightforward, but will require patience as you have to wait for the credit bureaus and furnishers to complete their own investigations.

With that said, they do have a time limit to finish these investigations, and most filed disputes will reach a conclusion within a couple of billing cycles. Disputing an error on your credit report takes time and effort, but it is well worth it in the long run.

For more information about disputing errors on your credit report, you can also refer to the FTC guidelines on disputing information on your credit report.