It is crucial to report any errors on your credit history. By writing to the credit-reporting organizations and providing copies of supporting documents, proof of identity, and other documentation, you can dispute them. In your dispute correspondence, you should identify the inaccurate information, explain why it is wrong, and ask that it be corrected or deleted. Generally speaking, you should receive a response from credit-reporting organizations within 30 days. If you do not get a response within 30 days, send another correspondence referencing the original dispute.
Common errors in credit reporting
American consumers are often plagued by credit reporting errors. Incorrect credit information can hinder your ability to get a loan and could even lead to a lower credit score. Fortunately, there are some easy ways to check your credit report for errors. There are four main types that could cause credit problems.
The first type of error is identity error, which can include a misspelled name, an account with the wrong name, or a wrong address. You may also have an incorrect credit limit or balance.
You can dispute them
You can file a dispute in a matter of minutes. The form can be completed online or printed to send to credit reporting agencies. A lot of financial counselors recommend that you mail a certified mail letter with a return receipt to preserve a paper trail. Credit reporting agencies have 30 business days to review your dispute and make a decision. Attach a duplicate of your credit file and highlight the mistakes you find to speed up this process.
The credit bureaus are required by law to investigate any disputes made against you. The process could take up to a whole month. The bureaus might take up to 30 business days to investigate your case.
The effects of not disputing these
Inaccurate credit reports can have a negative impact on your ability to get credit cards, job applications, and insurance. These items can be disputed to get them removed from your credit report. Although the process can be time-consuming, it's worth the effort to avoid any negative consequences. Sometimes, incorrect information can go unnoticed and remain hidden for years.
Contact the credit bureau or data furnisher first to dispute a report error. These companies include Equifax, Experian, and TransUnion. You will need to provide identification documents, such your bank statements, which should show your name, address and current payment status. 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
These are the things to do when you have been notified that your credit report is incorrect. First, learn how to correct the error. Credit bureaus can report unauthorized inquiries as long as they are not disputed. However, if you don't dispute the items, they could stay on your credit report.
If you are disputing credit reporting errors, it is important to provide new information to the credit bureau. Otherwise, the agency might reject your dispute or declare it frivolous. Another option is to contact Consumer Financial Protection Bureau and lodge a claim. If necessary, the bureau will forward your complaint on to the credit reporting agency and/or another government agency.