How To Dispute Errors and Inaccurate Information on Credit Report
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Having a good credit score would mean you’d enjoy benefits like these:
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- More housing options.
- Being able to save towards other types of insurance – such as house insurance.
- Eligible for lower credit card interest.
- More enticing car insurance rates.
- Being able to get a cell phone without having to make any security deposit or repayment.
In fact, there are many benefits a good credit score could entitle you to. However, “credit report errors” is one major thing that can be a menace to your good credit score.
Therefore, if you don’t want some silly credit report errors to ruin your hard-earned credit score – it is advisable that you go through your credit report always.
Once you identify any errors, you have the right to dispute for inaccuracy. You may not know how to do it – that’s the reason why this article has been written to serve as a guide.
What Is a Credit Dispute Letter?
In short, a credit dispute letter is a letter that is written to credit bureaus and data furnishers to debate a piece of information that is inaccurate on a credit report.
The 3 main credit bureaus where you can send your credit dispute letter for necessary corrections are
- TransUnion
- Equifax
- Experian
Moreover, the letter submission can be done in two ways:
- Via mail
- Via phone call or online.
What Are Some Common Credit Report Errors?
If building a good credit score is crucial to you, try to always check your credit report. This could be done for free when you visit AnnualCreditReport.com.
When going through your credit tradelines for errors, here are some of the possible inaccuracies or errors to watch out for.
1. Account status information error.
Even though you always pay for your stuff on time, the report could state that you make late payments. This could affect your credit score if not disputed.
2. Personal information error.
The report may state a house address, name, Social Insurance Number(SIN), or date of birth that has nothing to do with you. This has to be disputed since it can be detrimental to your credit score.
3. Credit balances or limits error.
The credit report may state that you have a current balance or credit limit which is incorrect. Disputing this will help you with credit utilization. Credit utilization is important because it demonstrates the relationship between your credit limit state on the report and the balance on your credit card. As you may know, a 30% or lower credit utilization ratio is what can boost your credit score – above 30% is not the best.
4. Data management error.
The credit report may show an already corrected mistake – so it is important that you check all errors that have been corrected previously to see if they’re reappearing.
How To Write a Credit Dispute Letter
After you’ve come across an error that is worth disputing, you have to write a credit dispute letter to the credit report agency whose report had inaccuracies(TransUnion, Equifax, or Experian). Below is a sample of a credit dispute letter.
[Date]
[Your Name]
[Your Address][Your City, State, Zip Code]
[Business Name]
[Street Address][City, State, Zip Code]
Subject: Disputing Information in Credit Report
Dear [Equifax, Experian, or TransUnion]:
I am writing to dispute the following information that your company supplied to [give the name of the credit bureau whose report has incorrect information]. I have circled the items I dispute on the attached copy of my credit report(s).
This item [for instance: retailer account at ABC Department Store and the account number] is inaccurate [or incomplete] because [describe in detail what is inaccurate or incomplete and why] I am requesting that [business name] have the item removed [or request another specific change to correct the information.]
[Add list and description of other disputed items, if that applies.]
Enclosed are copies of [my credit report and any other documents enclosed with a short description, for instance, your record of payments made] supporting my request. Please reinvestigate this matter and contact the nationwide credit bureaus to have them delete [or correct] the disputed item(s) as soon as possible.
Sincerely,
[Your name]
Enclosures: [List what you are enclosing]
- The document issued by the lender about the credit limit.
- Payoff statement.
- A copy of your credit report(with your account number).
- Billing statement.
- Statement with the correct account number.
Mailing Information Needed To Mail Your Credit Dispute Letter
Once you’re done with the dispute letter, it’s time to mail it to TransUnion, Equifax, or Experian. Here is their mailing information:
1. Equifax
- P.O. Box 740241
- Atlanta, GA 30374
- Tel: 1-888-397-3742
- Website: www.equifax.com
The Equifax dispute form can be downloaded here.
2. TransUnion
- P.O. Box 2000
- Chester, PA 19022
- Tel: 1-800-916-8800
- Website: www.transunion.com
The TransUnion dispute form can be downloaded here.
3. Experian
- P.O. Box 4500
- Allen, TX 75013
- Tel: 1-888-397-3742
- Website: www.experian.com
Note: Submission of credit dispute letters can be done online using the website URLs provided for each credit bureau.
How long will it take for the error to be corrected?
Usually, credit bureaus take 30 days to make the necessary corrections to your credit report. However, there are occasions that it takes more than 30 days – that’s when the errors that are supposed to be corrected are complex or many.
Also, it shouldn’t be forgotten that mailing your dispute form takes about 3-5 days to get to the credit bureau. Thus, you can send the report online to save time.
What errors are not worth disputing?
It’s not all errors that affect your credit score – so when such errors are seen in your credit report, you can ignore them. Some errors that are not worth disputing or filing for inaccuracy are
- Old phone number
- Misspelled lender’s name
- Name of an old employer.
Final Words
In some situations, credit bureaus see information in reports as correct even after disputes have been made. If it happens that way, the best thing to do is to hire a low-cost nonprofit credit counselor to help solve the issue.
Alternatively, you can file a report to any of these bodies:
- Consumer Finance Protection Bureau(CFPB).
- Better Business Bureau(BBB).
- Federal Trade Commission(FTC)
A good credit score has so many benefits, therefore always go through your credit report to make sure no error ruins it. Furthermore, don’t hesitate to dispute an error – since you now know how to do that with the help of this article. I’m wishing you more dollars and freedom! Cheers!
Manuelo is an entrepreneur and a personal finance nerd. He is the founder of Dollars And Freedom. An expert in side hustles, online gigs, and everything about making money. His works have been featured on major financial publications, like Business Insider, GoBankingRates, Investopedia, Entrepreneur, and more. When he’s not busy with his blog or writing for others, you’ll catch him hanging out with loved ones or reading books on stoicism and self-development.
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