Your credit report impacts almost every aspect of your financial life. If you ever want to purchase a home, take out a loan, or apply for a credit card – financial institutions will reference your credit report to determine your creditworthiness. That’s why it’s crucial to ensure the accuracy of the information on your credit report. We wanted to shed some light on disputing your credit report – should there ever be a discrepancy, and what the process looks like.

How to Dispute Your Credit Report

Disputing your credit report is a right guaranteed to you under the Fair Credit Reporting Act (FCRA). Here’s a step-by-step guide to help you navigate through the process, should you ever need to.

1. Obtain Your Credit Reports: The first step in this process is to get a copy of your credit reports. You are entitled to a free copy from each of the three major credit bureaus — Experian, Equifax, and TransUnion — once a year through AnnualCreditReport.com. We also offer a credit assessment tool on our website to help you get an idea of what yours may look like.

2. Review Your Reports: Go through each report meticulously, identifying any errors. These could include incorrect personal information, incorrect account details, fraudulent accounts opened, and outdated information.

3. Gather Evidence: If you find inaccuracies, gather supporting evidence to substantiate your claim. This could include bank statements, payment records, or correspondence from the creditor or collection agency.

4. File Your Dispute: Write a dispute letter to each credit bureau that is reporting the inaccurate information. Include your name and address, a detailed explanation of the dispute, and copies of supporting documents. TransUnion offers free online disputing services as well.

5. Follow-Up: After filing your dispute, the credit bureau has 30 days to investigate. They will contact the information provider, who will then need to investigate the dispute. If the provider finds the information is incorrect, they must notify all three credit bureaus to correct your credit file.

6. Review the Outcome: Once the investigation is complete, the credit bureau must provide you with the results and a free copy of your credit report if the dispute resulted in a change. You will want to review this report to ensure the corrections have been made.

Common Questions About Disputing a Credit Report

Understanding your credit report and the process of disputing it is important for the big picture of your financial future. Below are some common questions we’ve heard from some of our members.

How often should I review my credit report?

You should review your credit report at least once a year. However, if you are planning a significant financial move, such as purchasing a home – you should review your credit report several months in advance.

What should I do if a dispute is unsuccessful?

If your dispute was unsuccessful, but you still believe the information is incorrect – you can request that a statement of the dispute be included in your future credit reports. You can also file a complaint with the Consumer Financial Protection Bureau (CFPB).

Can I have a third party dispute items on my behalf?

Yes, you can have a credit repair company dispute items on your behalf – but it’s important to understand that some companies might charge high fees for utilizing their services. It is often more beneficial and cost-effective to dispute any errors yourself.

How long does negative information stay on my credit report?

Most negative information will stay on your credit report for seven years, while bankruptcy information can stay on your report for up to ten years.

Does filing a dispute hurt my credit score?

No, filing a dispute does not hurt your credit score. However, if the dispute results in a change to your credit report, it could indirectly affect your credit score – either positively or negatively, depending on the nature of the change.

At First Financial, we encourage our members to take an active role in managing their credit so they can achieve their financial goals. We’re here to help throughout the process! Visit a local branch or call 732.312.1500 to learn more about ways to manage your credit score.

Related Article: Steps to Improving Your Credit Score

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