A high credit balance can cause your score to drop by 45 points or more because the dominant consumer credit score model includes the portion of credit limit used -- called credit utilization ratio -- as a factor, according to Ellen Cannon of Bankrate. If you just paid a credit card balance and want your credit report to reflect this now, you can call the credit bureau but this probably is an unnecessary step.
Identification
Credit bureaus will listen to a call to dispute a credit card balance on your credit report, but if you want to update it, you must dispute the information by writing a letter or using an online dispute form available at the credit bureau's website. If you send a letter, attach evidence of the proper account balance, such as a copy of your balance statement. Also, print out a copy of your credit report, highlight the balance you dispute and include it in your letter. If you make an online dispute, the bureaus have an electronic system that asks the lender to verify the data on the account, so it updates automatically.
Practicality
The credit bureaus can take up to 30 days to complete the investigation of a dispute. Also, it may be another month before the bureaus update your report. Creditors usually automatically update your account details every month, so disputing the account balance with the credit bureaus likely does not expedite the updating of your credit report. If you ask the lender to update your credit report, you can bypass the credit bureau dispute process, but your report may still take another month or more to reflect the new balance.
Considerations
You may want to initiate a dispute with the credit bureaus if the lender has not updated the balance on your credit report for several months. The automated dispute system may not resolve the incorrect balance if there is a problem on the creditor's end, such as the lender crediting payment on your account to another person's account. A wrong decimal point, such as a balance of $1,000 accidentally reported as $10,000, can drive up your utilization ratio and make you look risky to creditors. Some disputes can take months to fix.
Tip
A few companies called "rapid re-scoring services" can update your report in as little as 72 hours. However, you must go through a lender, such as a bank or credit card company, that is a customer of a rapid re-scoring company to use this service. Rapid re-scoring companies rarely investigate disputes, so you creditor needs to agree to the corrected balance before you hire a rapid re-score company. In 2010, most rapid re-score cases cost $50 or less to process.
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