The Best Way to Dispute Credit Errors

Your credit report is one of the most important documents in your life. It basically tells potential lenders, and creditors, whether or not you are a financially responsible person. Credit reports help determine what your cost will be to borrow money. Credit errors on your credit report can significantly impact your ability to purchase a car, or a house. Here's the best way to dispute credit errors on your credit report.

Get Organized

The most important aspect of disputing errors on your credit report is organization. You need to start this process by ordering credit reports from the three major credit bureaus. Experian, Equifax and Trans Union have their own separate credit scores. Moreover, information contained in an Experian credit report may differ from information found on your Trans Union credit report. Make sure to read every detail of each credit report. Use a highlighter or colored pen to mark credit errors, or discrepancies, in each report. Make a folder or binder in which you can keep your credit reports and any correspondence between you, your creditors and the credit bureaus.

Contact Credit Bureaus

After identifying errors, you can dispute them by fax, mail or online. Mailing your credit dispute letter is the best and most popular way to dispute credit errors on a report. Send it directly to the credit bureaus via certified mail. This will ensure that your letter has been received. When you write your letter, you can include supplemental documentation, such as a copy of your credit report. In your letter, be sure to clearly state what the error is and how it should be corrected. Include other pertinent information, such as account records and statements, to validate your case. Your credit dispute letter should be sent to each credit bureau that has an error, even if the error is repeated on more than one credit report. Writing a letter gives you the advantage of retaining copies of all your correspondence. Experian is the only credit bureau that requires you to dispute all credit errors online. Make sure to date the letter. And include all your contact information so that the credit bureau can properly respond to your dispute.

Follow Up

The credit bureaus conduct an investigation of your claim. They have 30 days from the time they receive your letter to respond to your dispute letter. You should be mailed a copy of any updates made to your credit report. If you have not received notification from the credit bureaus within 30 days, you can try contacting your creditor directly to resolve the error. If you don't get a credit error updated, you can resubmit your credit error dispute with new documentation to support your claim. When you have been notified that your credit error has been fixed, always double-check your credit report to make sure it's been updated to reflect the change.