Mistakes happen, but inaccurate information on your credit report can be more than frustrating – it can greatly lower your credit score and affect your finances for years. Even small reporting errors like the wrong address, misspelled name, or closed account listed as open deserve fixing.
Thankfully, federal law provides you the rights and means to dispute credit report errors. In this blog, you’ll learn effective steps for finding and challenging inaccurate or incomplete items so they get investigated and corrected.
Why It’s Critical to Dispute Credit Report Errors
Your credit report plays a major role in your financial life. Lenders, landlords, insurers, and even some employers review your credit history when deciding whether to approve an application.
Just one serious mistake on your report, like an account that isn’t actually yours, can make it difficult to qualify for credit or could substantially increase the interest rates you pay.
Under the federal Fair Credit Reporting Act (FCRA) and Mississippi credit reporting laws, the three major credit bureaus – Equifax, Experian, and TransUnion – are required to ensure the information in your credit file is accurate and up-to-date. However, errors do occasionally slip through.
A Federal Trade Commission study found that one in four consumers spotted an error when reviewing their credit reports. Getting serious mistakes removed from your credit history can provide a meaningful boost to your credit score.
Step-by-Step Process for Disputing Mistakes on Your Credit Report
Disputing errors on your credit report may sound intimidating, but the process is very straightforward. Here are the basic steps we recommend:
1. Obtain Your Credit Reports and Review for Errors
You can get free copies of your credit reports from each of the three major credit bureaus – Equifax, Experian, and TransUnion – every 12 months at AnnualCreditReport.com. Carefully review your reports, line by line, watching for any inaccurate, suspicious, or outdated information.
Common errors include:
- Accounts or inquiries you don’t recognize
- Late payments or other negative items older than 7 years
- Outdated account statuses, like “late” on an account you paid
- Misspellings of your name, wrong current address, etc.
2. Highlight Any Inaccurate or Suspicious Items
Print out your credit reports and use a highlighter to mark any negative items you want to dispute. Make notes describing why you believe the information is wrong. Having the physical copies makes it easy to reference your disputes.
3. Draft Effective Dispute Letters to Each Credit Bureau
For each error, write a dispute letter to the relevant credit bureau clearly stating:
- Your full name, current address, SSN, and date of birth
- That you are disputing incorrect information on your credit report
- The account name, number, and specific disputed info (attach highlighted report copy)
- Brief explanation of why the entry is inaccurate
- Request to have the item permanently deleted or corrected
4. Submit Your Dispute and Supporting Documents
Send your dispute letters via certified mail with return receipt requested so you have proof it was delivered. Include copies of any documents that support your dispute, like bank statements, proof of payment, etc.
Under the FCRA, the credit bureaus must complete an investigation within 30 days. Typically you will receive a response by mail, but you can also check online or call.
5. Follow Up if Errors Aren’t Corrected
If the credit bureau doesn’t remove the disputed information, you can file another dispute providing additional evidence or escalate to legal action. Under the FCRA, you can also sue creditors who fail to properly investigate disputes.
Persevering pays off. With some legwork, you can get inaccurate items removed so you can rebuild and improve your credit.
The Impact of Successful Credit Report Disputes
When negative items are removed from your credit reports, you should see your credit score begin to improve within a month or two. It’s not uncommon to gain 50 to 100 points or more from fixing just one serious error.
Over time, a better credit score unlocks better terms for credit cards, loans, insurance policies, apartment rentals, and more. Many people have used credit disputes as a springboard to qualifying for their first mortgage, purchasing investment property, financing a business, or finally getting approved to refinance high-interest debt.
Hiring a Mississippi Consumer Lawyer Can Help Your Disputes Succeed
Trying to dispute credit report errors on your own can be challenging and time-consuming. Consumer lawyers have extensive experience successfully disputing inaccurate information under the FCRA.
They can provide valuable help with:
- Reviewing your credit reports to identify the best dispute strategies
- Drafting persuasive dispute letters citing relevant legal protections
- Collecting supporting documents like proof of payment
- Negotiating with creditors to get negative items corrected
- Taking legal action against credit bureaus if they don’t adequately fix errors
Having an experienced bankruptcy attorney on your side can greatly improve your chances of success. Many clients recover their attorney fees and court costs from the defendants when we win FCRA judgments.
Take Control of Your Credit Report Today
Don’t let inaccurate information needlessly drag down your credit and cost you money. Under the FCRA, you have the power to dispute credit reporting errors and quickly restore your scores.
The credit reporting lawyers at Ware Law Firm has the expertise to help you compel the credit bureaus to fix damaging mistakes.
Visit https://warelawfirm.com/ to schedule a case review so they can start crafting the right solutions for your situation. The sooner you dispute those errors, the sooner your credit will improve.