If you've spotted errors on your credit report, it's important to dispute them. By writing to the credit-reporting organizations and providing copies of supporting documents, proof of identity, and other documentation, you can dispute them. You should clearly identify the error, then explain why, and request a correction or deletion. The credit-reporting agencies should reply within 30 working days. If you don’t hear back from the credit-reporting agencies within this time frame, please send another letter referencing your original dispute.
Common errors in credit reporting
American consumers have a problem with credit reporting. Incorrect information in credit reports can make it more difficult to qualify for a loan. It can also lower your credit score. There are easy ways you can check your credit report for errors. There are four major types of errors that could affect your credit.
First, there is identity error. This could include misspellings of names, accounts with incorrect names, or wrong addresses. An incorrect credit limit or account balance can also be an error.
Ways to dispute them
You can file a dispute in a matter of minutes. You can complete the form online or print one to mail to the credit reporting agencies. Many financial counselors suggest that you send a letter via certified mail with an acknowledgment. This will allow you to keep a record of the transaction. Once you have submitted your dispute, credit reporting agencies have thirty days to investigate it and return to you. To expedite the process, you can attach a copy of your credit report and highlight the errors you found.
The credit bureaus are required by law to investigate any disputes made against you. This process can take as long as a month. In some cases, the bureaus may need up to 30 days to investigate your dispute.
The effects of not disputing these
Inaccurate or incorrect credit information could impact your application to credit cards, jobs, or insurance. These errors can be corrected by disputing them. While the process is time-consuming, it is worth the effort to avoid negative consequences. Ofttimes, inaccurate information may go unnoticed until years later.
First, contact the credit bureau or data provider to correct a report error. Equifax and TransUnion are examples of these companies. You will need to provide identification documents, such your bank statements, which should show your name, address and current payment status. Other documents you'll need to submit are court documents, bankruptcy schedules, or letters from lenders that prove the account is yours. You might need to provide evidence that your identity was stolen in certain cases.
The cost of not disputing them
If you have recently been notified that you have a credit report error, there are a few things you should do. First, you must know how to dispute the error. Credit bureaus are permitted to report unauthorized queries if they have not been disputed. However if you fail to dispute these items, it could result in them being kept on your credit file.
If you are disputing credit reporting errors, it is important to provide new information to the credit bureau. The agency could reject the dispute if it finds the dispute frivolous. You can also contact the Consumer Financial Protection Bureau to file a complaint. If necessary, the bureau will forward your complaint on to the credit reporting agency and/or another government agency.