How To Dispute a Credit Report

According to a study from the Federal Trade Commission (FTC), 5 percent of consumers in the U.S. have errors on one of their credit reports from the three major bureaus: Experian, TransUnion, and Equifax. As credit scores impact what car you can lease, what apartment you can rent, and what loans you can obtain, errors could seriously affect your life. Here’s how to dispute errors on your credit report and get it back to normal.

How To Dispute a Credit Report

To dispute an error on your credit report, contact the bureau behind the inaccurate report.

How To Submit Your Dispute

You can submit your dispute over the phone, online, or by mail. We recommend doing it online for the fastest results.

Information You’ll Need To Provide

In addition to the above, be prepared with the following information:

• Report confirmation number
• Each mistake
• Account numbers for disputed accounts
• Why you are disputing this information
• A copy of your credit report with the dispute, which you should highlight or circle
• Copies of any documents that support your argument1

What You Can Dispute

You can dispute information that you think isn’t accurate, such as an incorrect name, an account that you closed that’s being reported as open, and false balances.

The dispute process will determine whether or not the dispute is accurate. You won’t be able to remove accurate information from your report, and negative information can stay on for a minimum of seven years.

How the Dispute Process Works

Once the bureau receives your dispute, it will forward all the documents to the furnisher, who provided the information on your credit report. Once the furnisher responds, the bureau will report back to you, unless the claim is considered frivolous. In any case, the bureau will determine whether the dispute is accurate and will change or not change your report accordingly.

Tracking the Status

Here’s how to keep track of what’s happening with your dispute with all three credit reporting bureaus.

Equifax:

1. Log in to your myEquifax account.
2. Click “Check Status of a Dispute.”
3. Alternatively, mail or phone them using the above contact information, but make sure you have the confirmation number you got when you submitted your dispute.2

TransUnion:

1. Log in to check the status of the dispute.3

Experian:

1. Sign in to your account.
2. Go to the Dispute Center online to view the results.
3. They’ll also alert you when there’s progress.4

Possible Dispute Outcomes

After you submit your dispute, there are three possible outcomes:

1. Frivolous: If the credit bureau thinks your dispute is frivolous, they’ll let you know within five days and your report won’t change.
2. Accepted: If your dispute is accepted, the bureau will change your report, fixing the error.
3. Not accepted: If your dispute is not accepted, the information will remain on your credit report. From here, you can reach out to the creditor directly for more information, as the correspondence won’t be listed on your report. We recommend placing a 100-word statement explaining the dispute in your credit file; there, you can explain any circumstances, like an illness or a bout of unemployment, that led to the negative information.5

How Long Disputes Take

Once the credit bureau receives your dispute, they must investigate it within 30 days. The investigation can take 30 to 45 days, and once the results are in, the bureau has five business days to notify you of the results. All in all, you can expect the answer within about two months of submitting your dispute.

Does Disputing Impact My Credit?

Merely filing a dispute won’t affect your credit score at all. However, if the bureau removes negative information from your credit report, your credit score could improve. Of course, it’ll only remove negative information if it’s inaccurate. If the bureau changes neutral information, like a misspelling of your name, your score won’t change.6

How Can Errors on Credit Reports Affect You?

Remember that FTC study that found 5 percent of Americans had errors on their credit reports? This means that 5 percent of people paid more than necessary on products like insurance and auto loans,7 undeniably non-negligible expenses. Bad credit scores can also affect the following for you:

• Loans
• Credit cards
• Jobs
• Apartments
• Buying/leasing cars
• Rental/home insurance8

The quicker you dispute inaccurate information on your credit report, the sooner your score can improve — if your dispute is accurate, that is.

Next Steps

Now that you’ve settled (or not settled) that dispute, here are the best practices for dealing with your credit:

• Check your credit frequently. Did you know that you’re eligible for a free credit report every year? We also recommend getting a credit reporting service or an identity theft protection service with credit monitoring to track your scores and reports from all three bureaus easily. Reviewing your credit will help you check if your identity has been stolen. Learn more about how to protect yourself from identity theft and what identity theft is in the first place.
• Place a fraud alert. If you think the inaccurate information on your credit report is a result of fraud, place a fraud alert on your report. Read about what to do if your identity is stolen.
• Include a statement. Even if the bureau won’t remove the negative information, adding a 100-word explanation in your credit file is a good way to explain extenuating circumstances.

Summary

Best-case scenario, you disputed inaccurate information on your credit report, the credit reporting company removed it, and your credit score went up, allowing you access to low-interest loans, exclusive apartments, and car leases galore. But this isn’t always the case. In some cases, you won’t be able to get this information removed, because the bureau believes it to be accurate.

But don’t fret. There are other ways you can improve your credit score besides disputing the information. Remember, it’s not set in stone!