If we could pinpoint the easiest way to repair your credit, it all boils down to one key aspect. Disputing errors on your credit reports. These errors crop up all too often. According to the FTC, five percent of consumers have credit report have errors on them. That means it’s more than likely that your credit report has an error on it, and errors can only mean one thing. Bad, bad, bad (OK, that was three things, but they’re all the same).
So how do you get those errors off of your report? You dispute them with the company that filed them in the first place. Of course disputing an error might sound a lot easier than it actually is. In most cases, the reporting companies have at least some evidence to back up their claims, though in some way or another, that evidence is wrong. To counter it however, you need evidence of your own that proves your side of the story (and there are always two sides aren’t there?).
In this section, we will provide you with a comprehensive tutorial on how to go about disputing errors on your credit report. This will help you whether you’re using a credit repair agency or doing it yourself. Let’s begin the journey of wiping those errors from your credit report once and for all.
Getting Your Credit Reports
Naturally, the first step to disputing any errors on your credit reports is to actually get your credit reports and have a look at them to find those errors.
There are three credit reporting agencies in the United States: Experian, TransUnion, and Equifax. While it would be great if they all contained the same information, that sadly isn’t the case. Not only do they calculate your credit scores differently, but one of them may even have information that the other ones do not.
You can have a free credit report sent out to you once per year from each of the agencies, and from there, begin the process of finding errors located on your reports.
While you’ll need to acquire all of your credit reports at the same time initially, it’s a good idea to stagger when you receive your reports afterwards. You can get one free report annually from each of the agencies, and they will generally contain the same information. So it’s wise to receive one report every four months to keep yourself as up-to-date as possible and monitor what is being added to your files.
U.S Credit Bureau Agencies and Contact Information:
Request Your Reports Online:
Reading Your Credit Reports
Now that you have your credit reports, let’s dig into them. The reports are broken down into four key sections: personal information, credit history, public records, and inquiries.
The personal information section is rather self-explanatory. This is where your name, address, current and former employers are all listed. This section is relatively unimportant, as the information on it will have no bearing on your credit score. However, if there are any errors, be sure to update them with the corresponding bureau.
Next is credit history. This section you’ll want to go over with a fine-tooth comb. In here, you’ll find listings for most lines of credit you’ve received from creditors. You may even have multiple listings from a single creditor if you have more than one account or you moved to a new location.
Credit listings will include the type of credit, the total and available balance on the credit line, its current status (active, closed, paid, etc.), the amount of the monthly or fixed payments, and how well you’ve generally paid the accounts.
Depending on your credit history, this section may be loaded with quite a deal of information to sift through. Study all of the information and make sure it’s accurate. Even the smallest discrepancies could negatively affect your credit score.
Next up on your report is public records. This portion will hopefully be free and clear. Anything that shows up in this section usually amounts to a major strike against your credit, such as bankruptcies or liens.
Lastly are inquiries. These are a list of your attempts to get new lines of credit, and for you, lists inquiries to receive your credit report made by other parties. The information in this section does not affect your credit score.
Pay particular attention to ensuring there are no listed accounts that are not yours. Strange accounts could indicate identity theft has taken place, and someone has managed to open one or more accounts in your name.
Filing A Dispute
If you’ve read your credit reports and found some information that is wrong, you should begin the process of disputing that information immediately. You’ll find links in the resources section below that will get you started with filing disputes with each of the three agencies.
Alternatively, you can consider mailing a dispute letter directly to the agencies using the address information also found in the resource section. Don’t forget to make copies of any documentation that proves your contention and include that along with the letter. Make sure you clearly indicated which information you are disputing.
Once a dispute is launched, the information being disputed will be marked as such within your credit report. The agencies at this point have 30 to 45 days to contact the creditors who first filed the information under dispute. If the creditors do not respond, the information will be removed.
Once the investigation is complete, you’ll be contacted via mail. You can also view the results of the investigation or its progress online.
It was reported by the FTC that as many as 70% of people who had previously filed disputes had no resolution and had essentially given up, despite the belief that their report still contained errors. 40% reported never even having heard back from the credit bureau. This emphasizes the value that can be found in hiring a credit repair agency. They will not let credit bureaus or creditors off the hook so easily. They work hard to force them to respond and make corrections as necessary.
Equifax Disputes – How to Dispute Information On Your Credit Reports | Equifax®
Experian Disputes – How to Dispute Credit Report Information – Experian
TransUnion Disputes – Dispute Credit Report: How to Dispute | TransUnion
What to expect after you submit a letter of dispute
Your dispute must be investigated by the credit reporting company. They have to send all relevant documents to the furnisher and report back to you the results. If the furnisher determines that your dispute is valid, they need to correct your information and notify all of the credit reporting companies that is had originally sent the inaccurate information to. They credit reporting agency then needs to update your report with the accurate details.
If the furnisher deems the information to be accurate and does not update or remove the information, you can request that the credit reporting company add a statement to your credit file that explains the dispute. Moving forward, that statement should be provided to anyone that requests your credit report.
Launching A Complaint
If you filed a dispute, and the item was not removed from your report, your final option is to launch a complaint. This can be done either through the Federal Trade Commission or the Consumer Financial Protection Bureau, you can find the links to each below.
You can launch these complaints in regards to either the creditors or the credit agencies themselves if you feel your dispute hasn’t been given due diligence. Both the FTC and CFPB will look into the matter and then contact the agencies directly. They will determine why the dispute wasn’t resolved and whether or not there was any wrong doing.
As with filing a dispute, you’ll need to provide the agencies with all applicable information. In the case of filing a complaint with the CFPB, they have a robust form that guides you step-by-step through the process. You’ll also be able to track the status of your complaint through both the FTC and CFPB websites.
Before resorting to this final step, you may want to have a credit repair agency make contact with these companies on your behalf. The level of co-operation that is shown by credit reporting agencies and creditors will be much higher.
As we detailed in our tip above, 40% of dispute filers never even hear back from the credit bureau. Credit repair agencies ensure this will not happen. They’ll also pressure creditors on disputed credit report entries. Once the information has been corrected, they will work out deals on your behalf that benefit both sides. Here are links to our top 3 credit repair companies: