Why Your Credit Report Matters
Your credit score is important for securing a home loan, auto financing, renting an apartment, and even certain job applications. However, the score itself is only part of the picture. The underlying credit report—detailing your open accounts, balances, and payment history—directly influences that score. If inaccurate information appears on the report, it can drag your score down unnecessarily.
How to Dispute Information on Your Credit Report
Begin by obtaining a free copy of your report from each of the three major bureaus—Experian, Equifax, and TransUnion—through AnnualCreditReport.com. Review the documents carefully for any of the following common errors:
- Misspelled name or incorrect personal details
- Accounts that do not belong to you
- Accounts belonging to someone with a similar name
- Closed accounts still shown as open
- Late payments recorded incorrectly
- Duplicate listings of the same account
- Wrong account balances
- Incorrect credit limits
Inform the credit bureau with the incorrect information
Notify the bureau that supplied the erroneous data in writing. Include a clear description of the mistake and any supporting documentation. The Federal Trade Commission provides a sample dispute letter that can help you format your request. Credit bureaus generally have 30 days to investigate and must forward your information to the original data provider.
Inform whoever provided the information of the mistake
Send copies of your evidence to the company that reported the inaccurate detail—such as a bank, retailer, or lender. Use the FTC’s sample letter for this step as well, ensuring you list all relevant facts and attach any proof that supports your claim.
Watch for your credit report to be updated
After the investigation, the bureau must inform you in writing of the outcome. If your dispute results in a permanent change, you are entitled to another free copy of your report. You may also request that the bureau send notices of the correction to anyone who accessed your report in the past six months, including employers who have requested a version for hiring purposes.
Caring About Your Credit
Allowing inaccurate information to remain on your report can have real consequences. Misreported late payments can lower your score even if you have always paid on time. Accounts that are not yours may signal identity theft, a far more serious issue. Taking the time to dispute errors can quickly stop negative items from dragging your score down.
Remember that only false, negative information can be removed. Accurate negative marks—such as a legitimate late payment—will stay on your report for the standard reporting period, typically up to seven years, with bankruptcies remaining for up to ten years.
The Bottom Line
Errors on credit reports are common, but they often go unnoticed unless you actively look for them. In addition to requesting your annual free reports, consider using a free monitoring service that alerts you to new accounts in your name or shifts in your score. Sites like CreditKarma.com and CreditSesame.com offer these features at no cost and can help you catch problems early.
