How to Fix Credit Report Errors

A purported 80% of credit reports contain errors, ranging from missing accounts to fraudulent ones.  Even scarier, an estimated 25% of reports have errors that can result in denial of credit. This post describes how to fix errors and omissions.

First off, disputing information on your credit report is free, unless you enlist someone to help you with it.

The easiest first step for fixing biographical problems and missing accounts, is to contact the three bureaus (Equifax, TransUnion, and Experian) directly.  This page contains links to online dispute submission forms for all three bureaus.  You must file a dispute with each bureau in which the erroneous information is found.

If you are disputing a specific missed payment, the terms of a given account, or payment history, the best first step is to contact the lender directly.  If the lender agrees that it’s an error or they’ll remove it as a courtesy, ask them to direct the changes to ALL 3 credit bureaus.

If you can’t get resolution directly from the lender, you can try the online dispute page listed earlier.

If this still doesn’t work, it’s time to kick it up a notch. You can send a letter by certified mail to the bureau listing each error, the reason for your dispute, and asking that the credit bureau to remove or correct the information.  Include copies of any supporting documents with the letter. If you are in a dispute about an amount owed to a lender, never admit in writing that the debt is valid.

The bureaus are required to investigate your dispute within 30 days and notify the creditor of your dispute.  The creditor must investigate and review the information you provided and report back to the bureau. The bureau will give you a written report of the investigation (and a free credit report if any information changed).  If the investigation doesn’t resolve your problem, you can request that the bureau include a statement of the dispute in your file for future reports. A dispute letter, in practice, isn’t very helpful.  Most creditors I’ve talked to personally have said that lenders typically only look at the credit score and don’t bother reading any letters attached to the credit file.

If all else fails and you still feel like you were wronged, you might consider going to a lawyer with your case.  But, most of the time, the above will work sufficiently. In other words, it almost always works, but is almost always an unpleasant hassle.

For Community Ladders’ members, we’ve so far been able to address and correct credit reports without formal legal action.