If you've spotted errors on your credit report, it's important to dispute them. This can be done by writing to credit-reporting agencies, submitting copies and proof of identity and supporting documents. 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. If you do not get a response within 30 days, send another correspondence referencing the original dispute.
Common types of credit reporting errors
Credit reporting errors are a common problem for American consumers. Incorrect credit report information can make it difficult to obtain a loan or lower your credit score. Fortunately, there are some easy ways to check your credit report for errors. There are four main types of errors that can affect your credit.
The first type is called identity error. This includes a misspelled or incorrectly named account, as well as an incorrect address. Another error could be an incorrect credit limit, or incorrect account balance.
They can be disputed in a variety of ways
You can file a dispute in a matter of minutes. The form is easy to fill online. You can also print one to mail to credit reporting agency. Many financial counselors recommend sending a letter through certified mail with a return receipt, so you can have a paper trail. Once your dispute is submitted, the credit reporting agencies have 30 days to investigate and report back to you. Attach a copy your credit card report to speed up the process. Highlight any errors.
Credit bureaus are legally required to investigate any dispute against you. The process can take upto a month. The bureaus might take up to 30 business days to investigate your case.
They are not to be disputed
Inaccurate credit information can affect your ability to apply for credit cards, insurance, or even a job. You can dispute the items and have them removed from you credit report. The process is tedious but can help avoid serious consequences. Many times, inaccurate information can go undetected for years.
To dispute an error in a credit report, the first step is to contact the data furnisher. Equifax and TransUnion are examples of these companies. You'll need to supply identifying documents like your current bank statements. These will show your name as well as your address. You'll also need to submit court documents, bankruptcy plans, and letters from lenders proving that your account is yours. You might need to provide evidence that your identity was stolen in certain cases.
Avoiding disputing them is costly
You should be aware of the following steps if your credit report has been incorrectly notified. First, learn how to correct the error. Credit bureaus have the right to report unauthorized inquires if they aren't disputed. But if these items are not challenged, credit agencies can still report them.
When you dispute credit reporting errors, you should provide the credit bureau with fresh information about the error. Otherwise, the agency may determine that the dispute is frivolous and reject it. Another option is to contact Consumer Financial Protection Bureau and lodge a claim. The bureau will forward your complaint to the credit reporting agency or another government agency if necessary.