It is important to correct any errors in your credit reports. You can do so by writing to the credit-reporting agencies and submitting copies of supporting documents and proof of identity. In your dispute letters, you should identify incorrect information and provide reasons for it. You can also ask for a correction or removal. Generally, you should hear back from the credit-reporting agencies within 30 days. You can send another letter to reference your original dispute if you do not receive a reply within the time limit.
Common errors in credit reporting
American consumers face a lot of credit reporting problems. Incorrect information in credit reports can make it more difficult to qualify for a loan. It can also lower your credit score. Fortunately, there are some easy ways to check your credit report for errors. There are four major types of errors that could affect your credit.
The first type is called identity error. This includes a misspelled or incorrectly named account, as well as an incorrect address. Other errors can include an incorrect account balance or an incorrect credit limit.
They can be disputed in a variety of ways
The process of filing a dispute is quick and easy. Either fill out the form online, or print it and mail it to the credit agencies. Many financial counselors recommend sending a letter through certified mail with a return receipt, so you can have a paper trail. The credit reporting agencies have 30 day to investigate your dispute and provide you with a report. Attach a duplicate of your credit file and highlight the mistakes you find to speed up this process.
All disputes against you are subject to investigation by credit bureaus. This process can take as long as a month. The bureaus might take up to 30 business days to investigate your case.
Effects of not disputing them
Inaccurate information on your credit report can negatively impact your application for credit cards or insurance. Fortunately, you can dispute these items to have them removed from your report. While the process is time-consuming, it is worth the effort to avoid negative consequences. Often, inaccurate information can go unnoticed for years.
To dispute an error in a credit report, the first step is to contact the data furnisher. Equifax (Experian), TransUnion, and TransUnion all fall under this category. 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 some cases you may be asked to show evidence that you are a victim or identity theft.
The cost of not disputing them
Here are some things to do if you were recently notified about a credit reporting error. First, learn how to correct the error. Credit bureaus may report unapproved inquiries if they're not disputed. If you don't dispute these items, your credit report could be affected.
When you dispute credit reporting errors, you should provide the credit bureau with fresh information about the error. If the agency does not receive the information, it may reject the dispute as frivolous. You can also contact the Consumer Financial Protection Bureau to file a complaint. The bureau will forward your complaint to the credit reporting agency or another government agency if necessary.