Your credit report has the power to influence almost every opportunity in your life. For example, a poor credit score can halt you from getting your dream car, house, and even job. Because it carries so much weight, knowing your credit score and the items on your report is crucial to ensure your future. But, what happens when you discover an error on your credit report?
According to a study completed by the Federal Trade Commission, over a quarter of participants found at least one error on their credit report. This may be due to a clerical mistake, lack of action, or even criminal activity. Credit report inaccuracies can include:
- Mistaken identity
- Failing to update accounts and debts based on marital status
- Leaving out a legitimate credit account
- Applying loan or card payments to the incorrect account
- Duplicate reports of an account
- Accounts and loans that you know nothing about
…And more.
How to dispute an error
If you have identified one of the above errors on your credit report, taking action immediately is vital to removing the inaccuracy and raising your score. Let’s take a look at three steps you can take to dispute an error:
- Report the error
First things first: File a dispute with Equifax, TransUnion, and Experian. In your report, include your full name and contact information, supporting documents, and a copy of your report highlighting any errors. Clearly explain each item you would like to dispute, the reason for disputing, and that they should be removed from your report.
- Speak to a creditor
Once you’ve filed a report with each of the main U.S. credit bureaus, you can contact the creditor that is linked to the error in your report. Again, include any and all relevant documentation and information in your report, including the details in the step above, as well as informing them that you’ve already contacted the bureaus. While this step is not necessary to file a claim, it will likely accelerate the process. Also, ask to be copied on all communications between the creditor and bureaus for additional insights into the progress of your correction.
- Follow up
The disputing process typically takes about 30 days — don’t hesitate to reach out to the bureaus and creditor if you do not hear back by then. If your dispute is refused, request a copy be included in your file and credit report. This will let any future lenders or creditors know that there was an alleged error.
Finding an error on your credit report can be shocking and disheartening, but fixing it might be easier than you think. Keep a constant eye on your credit score to monitor for errors that pop up, and be vigilant in tackling them.
Visit our website to learn how APGFCU can help get your credit on the right track!