Credit Report Disputes: Here Are Some Things You Need to Know
Your credit score is used to evaluate your creditworthiness and your score is calculated based on a combination of factors in your credit report. If there are any errors on your credit report, it can cause your credit score to be lower than it should, which can affect your ability to borrow money at the best rates. Whenever you find an error on your credit report, it’s important to dispute it right away. Many consumers have questions about credit report disputes: here are some things you need to know.
Types of Errors to Look For
At least once a year, obtain a copy of your credit report from all three of the major credit bureaus. The easiest way to do this is through AnnualCreditReport.com. Look over the information on all three of the reports. Things to look for include:
- Misspelling of your name
- An address you have never lived at
- Payments showing as paid late that you paid on time
- Wrong loan amounts or account balances
- Loan showing as open that has been paid in full
- Accounts you don’t recognize
If you’ve had negative items such as past-due payments or collection accounts that are older than seven years old, they should not still be appearing on your credit report. If you’ve been through a divorce, make sure your ex-spouse isn’t shown as connected to accounts incorrectly.
Disputing an Error
Each credit bureau has information on its website regarding how to file a dispute, which can be done online or by mail or phone. When you find an item that needs to be disputed, gather as much backup documentation as you can such as canceled checks, a bank statement, or a divorce decree.
You’ll also need to include information to confirm your identity such as a copy of your driver’s license or government-issued ID and a bank statement or utility bill to confirm your address. It’s a good idea to also send a letter to the creditor to let them know they are reporting incorrect information.
The Response to Your Dispute
Once you have filed a dispute, the credit bureau has to investigate your dispute. They’ll contact the company who furnished the information, known as the data furnisher. The data furnisher has to respond promptly, and the credit bureau in most cases sends you the results of the investigation within 30-45 days. If the investigation confirms that there is an error, the credit bureau will remove the error and send you a corrected copy of your credit report.
If your dispute is denied, you have the right to file another dispute as long as you can provide additional information or documentation. Filing another dispute without additional information is considered frivolous and won’t be investigated.
An Easy Way to Dispute Credit Report Errors
Disputing credit report errors and working with the credit bureaus may feel confusing or stressful at times. Dovly is an AI credit engine that can help you dispute any errors you find on your credit report. Try it risk-free with our free membership tier. Get in touch with Dovly today.
