What If You Find an Error in Your Credit Report
Thursday Aug 31st, 2023
Your credit report is an important document that lenders, employers, and other organizations use to evaluate your creditworthiness. However, sometimes errors can appear on your credit report that can negatively impact your credit score and your ability to obtain credit. If you find an error in your credit report, it's important to take action to correct it. In this article, we'll take a closer look at what you should do if you find an error in your credit report.
What Qualifies as an Error?
Before you take action to correct an error on your credit report, it's important to understand what qualifies as an error. Common errors include incorrect personal information, such as your name or address, inaccurate account information, such as an account that doesn't belong to you or a balance that is incorrect, and fraudulent activity, such as accounts opened in your name without your knowledge. If you notice any of these types of errors on your credit report, you should take action to correct them as soon as possible.
How to Dispute an Error on Your Credit Report
Step 1: Contact the Credit Bureau
The first step in disputing an error on your credit report is to contact the credit bureau that issued the report. You can typically find contact information on the credit report itself or on the bureau's website. Provide a detailed explanation of the error and include any supporting documentation, such as bank statements or receipts.
Step 2: Contact the Creditor
If the error is related to a specific creditor, you should also contact them to dispute the error. Provide a detailed explanation of the error and include any supporting documentation. The creditor is required by law to investigate the dispute and respond to the credit bureau within 30 days.
Step 3: Follow Up
After you've submitted your dispute, it's important to follow up regularly to ensure that the error is corrected. Credit bureaus are required by law to investigate disputes within 30 days, but it may take longer for the dispute to be resolved. If the dispute is not resolved to your satisfaction, you can escalate the issue to a higher authority, such as a consumer protection agency or a lawyer.
The Importance of Monitoring Your Credit Report
One of the best ways to catch errors on your credit report is to monitor it regularly. You can request a free copy of your credit report once a year from each of the major credit bureaus, or you can use a credit monitoring service to keep an eye on your report year-round. By monitoring your credit report regularly, you can catch errors early and take action to correct them before they negatively impact your credit score.
If you find an error on your credit report, it's important to take action to correct it as soon as possible. By understanding what qualifies as an error, following the steps to dispute the error, and monitoring your credit report regularly, you can protect your credit score and your financial well-being.