You should dispute any credit-reporting errors you find. By writing to the credit-reporting organizations and providing copies of supporting documents, proof of identity, and other documentation, you can dispute them. You should clearly identify the error, then explain why, and request a correction or deletion. In general, credit-reporting agencies should respond within 30 days. Send another letter, referencing the original dispute, if you don't receive a response within this timeframe.
Common errors in credit reporting
American consumers are often plagued by credit reporting errors. Incorrect information on credit reports can make it harder to qualify for a loan, and can even lower your credit score. Fortunately, there are some easy ways to check your credit report for errors. There are four major types of errors that could affect your credit.
The first type of error is identity error, which can include a misspelled name, an account with the wrong name, or a wrong address. A wrong credit limit or account balance could also be errors.
Ways to dispute them
Filing a dispute is simple and fast. You can either fill it online or print one and mail it to credit reporting agencies. Many financial counselors recommend sending a letter through certified mail with a return receipt, so you can have a paper trail. After your dispute has been submitted, credit reporting agencies will have 30 days to investigate the matter and send you a report. Attach a duplicate of your credit file and highlight the mistakes you find to speed up this process.
Law requires credit bureaus to investigate all disputes. However, the process can take up to a month. In some cases, the bureaus may need up to 30 days to investigate your dispute.
Neglecting to dispute them can have devastating effects
Inaccurate credit report information can impact your application for credit cards, insurance, and even a job. These items can be disputed to get them removed from your credit report. The process is tedious but can help avoid serious consequences. Inaccurate information can often go unnoticed for many years.
You should first contact the data supplier or credit bureau to dispute a report mistake. Equifax and TransUnion are examples of these companies. You'll need to provide identifying documents, such as your current bank statements showing your name, address, and payment status. You may also need court documents or bankruptcy schedules. These documents will prove that your account is yours. You may need to show proof that you were a victim of identity theft in some cases.
Avoiding disputing them is costly
Here are some things to do if you were recently notified about a credit reporting error. First, you should know how to dispute the error. Credit bureaus are permitted to report unauthorized queries if they have not been disputed. However if you fail to dispute these items, it could result in them being kept on your credit file.
Credit bureaus should be able to verify the accuracy of credit reports if you want to dispute them. Otherwise, the agency may determine that the dispute is frivolous and reject it. You may also contact the Consumer Financial Protection Bureau, and make a complaint. If necessary, the bureau will forward your complaint on to the credit reporting agency and/or another government agency.