Credit report errors are more common than most people realize. A 2021 FTC study found that one in five consumers had an error on at least one of their credit reports. These errors can lower your credit score, raise your borrowing costs, and even prevent you from being approved for loans. The good news is that disputing errors is your right under federal law, and the process is straightforward if you follow the steps correctly.
Check Your Credit Reports First
You cannot dispute an error you do not know about. Start by getting your free credit reports from all three major bureaus: Equifax, Experian, and TransUnion. Under federal law, you are entitled to one free report from each bureau every 12 months through AnnualCreditReport.com, the only government-authorized site for free reports. As of 2023, the bureaus extended free weekly access to reports for all consumers.
Review each report carefully, as errors may appear on one report but not the others.
Common Credit Report Errors
When reviewing your reports, look for:
- Accounts that are not yours (possible identity theft or mixed files)
- Late payments marked incorrectly when you paid on time
- Accounts listed as open that you have closed
- Incorrect balances or credit limits
- Accounts in collections that you paid off
- Duplicate accounts listed more than once
- Personal information errors (wrong address, name misspelling)
- Negative items older than seven years (which should have dropped off)
How to File a Dispute
Step 1: Gather Documentation
Before filing, collect evidence supporting your dispute. This might include bank statements showing an on-time payment, a letter from a creditor confirming a debt was paid, or documentation showing an account does not belong to you. Strong documentation makes your dispute more likely to succeed.
Step 2: File a Dispute With the Credit Bureau
You can dispute directly with each credit bureau online, by mail, or by phone. Submitting online is fastest. Each bureau has a dedicated dispute portal:
- Equifax: equifax.com/personal/credit-report-services/credit-dispute
- Experian: experian.com/disputes
- TransUnion: transunion.com/credit-disputes
For disputes by mail, send a certified letter with return receipt requested so you have proof of delivery. Include copies of your supporting documents, never the originals.
Step 3: Dispute With the Furnisher
In addition to disputing with the credit bureau, contact the creditor or lender that reported the error. Under the Fair Credit Reporting Act, the furnisher (the company that provided the information to the bureau) is also required to investigate your dispute. Disputing with both the bureau and the furnisher gives you the best chance of a correction.
What Happens After You File a Dispute?
The credit bureau has 30 days to investigate your dispute (45 days in some circumstances). During this time, they contact the furnisher who reported the information. The furnisher must investigate and report back.
Within five days of completing the investigation, the bureau must send you results. If the bureau finds the information is inaccurate, they must correct or delete it and notify the other bureaus if the error appeared on multiple reports.
What If the Dispute Is Rejected?
If your dispute is rejected but you believe the error is genuine, you have several options:
- Add a consumer statement to your credit report explaining your version of the situation
- Resubmit the dispute with stronger documentation
- File a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov
- Consult a consumer rights attorney, as you may have legal remedies under the FCRA
How Long Does It Take to See the Change?
If the bureau corrects the error, you should see the change in your credit report within 30 days. Credit score updates depend on when your lender or creditor next pulls your report. If the error was significantly dragging down your score, you may see an improvement of 20 to 100 points or more once it is corrected.
Preventing Future Errors
Check your credit reports at least once per year, even when you are not applying for credit. Consider signing up for free credit monitoring through your bank or a service like Credit Karma, which alerts you when new accounts are opened or significant changes appear on your report.
The Bottom Line
Disputing a credit report error is your legal right and often a straightforward process. Start by pulling your reports, identifying the specific error, and filing disputes with the relevant bureaus and furnishers. With documentation and persistence, most legitimate errors can be corrected, potentially boosting your credit score and saving you money on future loans.
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