If you've spotted errors on your credit report, it's important to dispute them. You can do this by writing to credit reporting agencies and attaching copies of supporting documents. In your dispute correspondence, you should identify the inaccurate information, explain why it is wrong, and ask that it be corrected or deleted. Generally, you should hear back from the credit-reporting agencies within 30 days. If you don't get a response within that time frame, send another letter referencing your original dispute.
Common errors in credit reporting
American consumers are often plagued by credit reporting errors. Incorrect information on credit reports can make applying for loans more difficult and even reduce your credit score. There are a few easy ways that you can check your credit score for errors. There are four main types errors that could negatively impact your credit.
Identity error is the first type. This can be a misspelled name or an account with a wrong name. A wrong credit limit or account balance could also be errors.
They can be disputed in a variety of ways
You can file a dispute in a matter of minutes. You can either fill it online or print one and mail it to credit reporting agencies. Financial counselors often recommend that you send a letter by certified mail with a receipt so you have a paper trail. Once your dispute is submitted, the credit reporting agencies have 30 days to investigate and report back to you. To expedite the process, you can attach a copy of your credit report and highlight the errors you found.
Law requires credit bureaus to investigate all disputes. The process can take upto a month. Sometimes, it may take up to 30 working days for the bureaus to examine your dispute.
Neglecting to dispute them can have devastating effects
Inaccurate credit report information can impact your application for credit cards, insurance, and even a job. These issues can be challenged to have them removed. This can be a time-consuming process, but it is worth it to avoid the negative consequences. Inaccurate information can often go unnoticed for many years.
You should first contact the data supplier or credit bureau to dispute a report mistake. Equifax, Experian and TransUnion are some examples. You'll need to supply identifying documents like your current bank statements. These will show your name as well as your address. You will also need to provide court documents, bankruptcy schedules, and letters from lenders to prove that the account is yours. In certain cases, you might also be required to prove that you have been the victim of identity theft.
It is cheaper to not dispute them
There are some things you can do if you've been notified of a credit card error in your credit report. First, it is important to know how you can dispute 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.
You should give the credit bureau new information when you dispute credit reporting mistakes. Otherwise, the agency may determine that the dispute is frivolous and reject it. Another option is to contact the Consumer Financial Protection Bureau and file a complaint. If necessary, the bureau will forward your complaint on to the credit reporting agency and/or another government agency.