How to Dispute Credit Report Letters

You usually don't know which credit bureau a lender will use to order your credit report when you apply for a loan or account. The Fair Credit Reporting Act (FCRA) requires the lender to reveal this information if your application is denied because of information contained in the report. You will receive a letter stating the reason you were turned down and contact information for the credit bureau. You may use this letter to make a dispute if you believe you were denied credit based on erroneous data.

Instructions

1

Follow the specific instructions in the letter to order a credit report from the credit bureau. It must give you a copy at no cost. Even if you've already gotten your FCRA-mandated free copy within the past 12 months through annualcreditreport.com., you are legally entitled to review the same information the lender received and used to make its decision.

2

Read through the credit report, looking for information tied into the reason your application was denied. For example, look at your payment history if the letter says you've had too many late payments on your existing accounts, or check your employment start date if it says your time on the job is too short. Scrutinize the information carefully for any mistakes.

3

Write your own letter to the credit bureau disputing every mistake you pinpointed. Give specific reasons and enclose copies of statements, payment receipts, pay stubs, bank records and any other proof to invalidate the errors. Free sample letters can be found at sites like FindLaw. The Federal Trade Commission recommends sending your letter certified so you have proof of the mailing date. The FCRA gives the credit bureau 30 days to check out your claims and send a response detailing any corrections.

4

Contact the creditor with whom you originally filled out the denied application and ask it to reconsider its decision once the credit bureau has removed or corrected the errors. The FCRA requires the bureau to send a corrected copy to the creditor that it can use to reconsider your request. However, it may not do so unless you touch base and specifically ask to have your application reviewed again.