How to Dispute Credit Report Errors With a Letter
Disputing errors on your credit report is a situation that most consumers will have to deal with at some point in their lives. If you don’t correct errors, it can cause your credit score to decrease lower than necessary, which can prevent you from getting approved for credit card offers, mortgages, car loans, and even cause problems renting an apartment or getting a new job.
How to Find Errors On Your Credit Report
Before you can dispute errors, you have to find out if there are any! Each year, federal law ensures that consumers can get a free copy of their credit report from each of the three major credit bureaus, TransUnion, Experian and Equifax. You have the option of getting all three reports at the same time, or you can order one at a time. It’s recommended that you get a copy of your report from one of the credit bureaus every four months, so you can keep an eye on any changes that may occur to your report throughout the year.
Visit www.annualcreditreport.com or call 1-877-322-8228 to get a copy of your report. If your report is error free and you want to see your credit score, you can get free credit scores by signing up for a trial, but you must cancel to avoid charges.
Review the Report for Errors
When you receive your credit report, go over it carefully to make sure all of the accounts listed are in fact yours, that there are no indications of late payments if you haven’t made any late payments, and so on. If you see any mistakes or accounts that do not belong to you, you’ll need to dispute the error to have it corrected.
Write a Dispute Letter
Make a copy of the credit report containing the mistake, and highlight the area(s) which show the error. Write a letter that indicates what record on the report is incorrect or inaccurate, the reason it’s inaccurate, and provide any proof or supporting documents you may have to support your position. Make a copy of everything you are going to mail to the credit bureaus for your own records.
Have Patience
Send your dispute letter and supporting documents to each of the credit reporting agencies and prepare to be patient. It does not seem to happen over night, and you may need to correspond more than once with additional information to get the investigator to correct your credit report. The process is rewarded with a higher credit score in most cases, if the error corrected improves your credit report – and a higher credit score gives you access to better financing, 0% APR credit cards for balance transfers, car insurance rates, and job opportunities.
