Have you been wondering what makes your credit score low despite repaying the loan timely and having a low credit utilization? Well, many people do not know that their credit report might have errors. The errors in your credit report can lower your score and make it difficult to get the credit.
Since a credit report is important in determining whether you will get the loans, you should know how to dispute errors. Here, we provide you with a guide that lists important steps to dispute errors on your credit report.
How to Dispute Errors on Your Credit Report?
Now that you know that you have a mistake in your credit report, you should focus on getting it corrected at the earliest. Do not ignore even the smallest errors like inaccurate personal information or significant errors like incorrect account details, as that can lower your credit score.
Follow these steps for credit bureau dispute.
1. Write to the credit bureau.
The process of correcting a mistake on your credit report starts with writing to the agency. Mention the error clearly in the application. You can write an email to the credit bureau, call customer support services, or send a hard copy of the to the bureau. Here we explain them in detail:
Writing Online: You can raise dispute online. You might have to mention some basic information about yourself or sign into the account to start the dispute process.
By Post: To raise the dispute by post, download the dispute form from the credit bureau website. Fill the same, attach the needed documents, and mail the same to the address mentioned on the website.
By Calling: You can also call the dispute specialist from the credit bureau. Explain the dispute information, ask questions about the process, and need documents.
2. Collect Documents
Along with the letter, it is also important to send the verification documents with it as proof. Collect all the necessary documentation like identification papers, bank statements, payment receipts, etc. These documents are important to prove the error during the dispute process.
If there is an error in the personal information, you might have to submit ID proof, address proof, birth certificate, passport, etc. If there is an incorrect account information, provide evidence like bank statements, etc.
3. Contact the Bureau
To start the dispute process, it is vital to connect with the credit bureaus. Mention the error and the correct details. Now, attach the supporting documentation wherever asked. Before submitting the form and documents, carefully review them. The information should be accurate and valid, or your claim will be rejected.
4. Contact Lender
It is good to speak to your lender or credit card company about the mistake in your credit report. The credit bureaus get information from the lenders. So, you can complain to them too. Getting in touch with the lender might help you resolve the mistake quickly.
5. Wait for the Bureau to Respond
Now that you have filed your complaint with the bureau allow them to check the mistake and revert. They may take up to 45 Days to reply to your complaint. The credit bureau takes about a month to look into the matter, check with the lender, gather the correct updates, and then send a reply. The credit bureau also checks with the lender again so that there are no chances of the error again. Once the credit reporting company is convinced and establishes the error, they change your credit report. They take another five days to inform you.
6. Check with All Credit Bureaus
If there has been an issue with one credit report, there are chances that other credit review platforms might also have the incorrect data. So, ensure to review all the credit reports like CRIF, Experian, Equifax, and TransUnion. If there is an error, disputing the same too.
7. Receive and Review the Results
The credit bureau will send the reply in writing, notifying you whether they have fixed the report. Depending on the time the bureau takes to update the credit score, you will soon see your correct credit score.
If several months pass and you don’t see your correct credit report, contact the credit bureau and lender again.
Why Disputing Credit Report Errors is Essential?
Fixing errors on your credit report is important for many reasons.
- A credit report is a vital financial document, and it is important that it mentions your financial information correctly.
- The credit score, which is important to get loans and other financial assistance in the future, is based on your credit report. If your credit report has an error, your score will be affected, too. Fixing the mistakes will improve your credit score.
- Since lenders evaluate your loan approval on the credit report, it is important to avoid loan rejection with a correct credit report and credit score.
Things to Dispute on the Credit Report
Thinking about the dispute items on your credit report? You can dispute any error in the report. Whether there is a mistake in payment history or account details, there is incorrect balance or wrong credit limit, you can dispute anything. Sometimes, the customers close the loan accounts, but it still reflects as an open account on the credit report.
The credit report has many entries. You can also dispute incorrect personal information like names, addresses, inquiries, etc. If you find accounts not belonging to you, you should report the same to the bureau. It could indicate identity theft.
Wrapping Up
The method of raising a dispute to the credit bureaus is not difficult, isn’t it? Whenever you find that the credit bureau has included incorrect information in your report, make sure to correct it. It is imperative to do so to increase your credit score and improve your financial standing. Also, ensure to frequently check your credit report to avoid missing out on any more discrepancies.
FAQs
1. What happens after a credit dispute?
Ans. It may take forty five days for the credit bureaus to correct and respond to the borrowers. This much time is needed for them to check, verify the claim with the lender, and update the report.
2. Can I raise several disputes in one dispute resolution form?
Ans. Yes, you can highlight all the errors in your credit report in the same resolution form.
3. Does it cost to raise a dispute?
Ans. No, you can dispute the errors on your credit report without paying anything.
4. Can I correct my credit report?
Ans. No, you cannot directly correct your credit report. You can only dispute the errors by writing to the agency.
5. What is a credit bureau dispute?
Ans. When there are errors in the credit report, you can raise a dispute to the credit bureau.
6. Why there are errors in the credit report?
Ans. Errors can happen when the lenders or creditors do not provide correct information to the credit bureau. It can also be because of the identity theft.