If you've spotted errors on your credit report, it's important to dispute them. To do this, you can write to credit-reporting agency and submit copies of supporting documents as well as proof of identity. In your dispute letter, you should identify the incorrect information, explain why it's wrong, and ask for a deletion or correction. The credit-reporting agencies should reply within 30 working days. You can send another letter to reference your original dispute if you do not receive a reply within the time limit.
Common types of credit reporting errors
Credit reporting errors are a common problem for American consumers. Incorrect information on credit reports can make applying for loans more difficult and even reduce your credit score. There are several easy ways to check for errors in your credit reports. There are four main types of errors that can affect your credit.
The first type of error is identity error, which can include a misspelled name, an account with the wrong name, or a wrong address. An incorrect credit limit or account balance can also be an error.
Ways to dispute them
The process of filing a dispute is quick and easy. You can either fill it online or print one and mail it to credit reporting agencies. Many financial counselors recommend sending a letter through certified mail with a return receipt, so you can have a paper trail. After your dispute has been submitted, credit reporting agencies will have 30 days to investigate the matter and send you a report. Attach a copy your credit card report to speed up the process. Highlight any errors.
All disputes against you are subject to investigation by credit bureaus. However, the process can take up to a month. In some cases, it can take the bureaus up to 30 days in order to investigate your dispute.
The effects of not disputing these
Inaccurate credit information can affect your ability to apply for credit cards, insurance, or even a job. You can dispute the items and have them removed from you credit report. It is time-consuming but it will help you avoid potential negative consequences. Sometimes, incorrect information can go unnoticed and remain hidden for years.
To dispute an error in a credit report, the first step is to contact the data furnisher. Equifax, Experian, or TransUnion are all examples. 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. In certain cases, you might also be required to prove that you have been the victim of identity theft.
It is cheaper to not dispute them
Here are some things to do if you were recently notified about a credit reporting error. First, you need to understand how to dispute the error. Credit bureaus are allowed to report unauthorized inquiries if they are not disputed, but if you do not dispute these items, you risk allowing them to stay on your credit report.
Credit bureaus need to be updated with new information when disputing credit report errors. Otherwise, the agency could decide that the dispute is not serious and reject it. Another option is to contact Consumer Financial Protection Bureau and lodge a claim. If necessary, the bureau will forward your complaint on to the credit reporting agency and/or another government agency.