A credit report dispute letter allows consumers to challenge inaccurate, incomplete, or outdated information on their credit reports. This document can allow you to correct any mistakes in your credit history, which can help you take charge of your credit rating and financial future.
What Is a Credit Report Dispute Letter?
A credit report dispute letter is a type of written communication sent to the credit bureaus to contest any errors, discrepancies, or inaccuracies on your credit report.
Unfortunately, mistakes are more common than many people realize. Failure to address these issues can create long-term credit issues. If you wait to report an issue, you may lose the evidence to prove the inaccuracies.
What Can You Challenge in a Credit Report Dispute Letter?
You can dispute credit report information like:
Incorrect Account Details
You may notice an incorrect account number on your credit report. Two numbers on your account may be transposed, or your report may show an entirely incorrect account number. In any case, you can settle these details in a dispute letter.
Payment Errors
Your credit report may show you failed to make a payment entirely or made a payment late. If you have the evidence to prove that these claims are false, you may consider writing a credit dispute letter.
Duplicate Entries
Review your credit report and look for instances of duplicate accounts. If the same account appears multiple times, you can request the removal of the duplicates.
Outdated Information
Dispute any negative items beyond the legally allowed reporting period, as determined by the Fair Credit Reporting Act (FCRA). For example, according to the FCRA, debt and foreclosures older than seven years must be removed from individuals’ credit reports in most cases.
Questionable Accounts
If you suspect fraudulent accounts or identity theft, dispute the accounts immediately. Someone may have tried to open an account in your name, but you can challenge this issue easily with a credit dispute letter.
How to Dispute an Item on a Credit Report
Disputing an item on your credit report involves a systematic process to increase your chances of success. These steps can help you challenge an item on your credit report:
Step 1 – Get Your Credit Report
Request a credit report from any of the three major credit bureaus, which are Equifax, Experian, and TransUnion. According to 15 U.S.C. § 1681j(a)(1)(A), you can receive one free report from each bureau annually, which you can obtain through AnnualCreditReport.com.
To obtain your credit report, you’ll provide the following information:
- Your name
- Your current address and any previous addresses, if applicable
- Your date of birth
- Your Social Security number (SSN)
Step 2 – Identify Potential Inaccuracies
Thoroughly review each credit report for any discrepancies or errors. Pay close attention to personal information, account details, and payment history. Some of the most common errors include late payments, duplicate entries, and outdated information.
Step 3 – Gather Evidence to Support Your Case
Gather all relevant materials that support your dispute. These materials may include account statements, receipts, correspondence with creditors, or other evidence proving the inaccuracy.
Compile the evidence into documents so you can easily submit them with your credit dispute claim and letter.
Step 4 – Create and Send the Credit Report Dispute Letter
Use a credit dispute letter template to draft your correspondence. Be clear, concise, and specific about the items you are disputing and the reasons for your dispute. Include the date, source, and type of the item. Make sure to enclose copies of the supporting documentation.
Send the letter via certified mail with a return receipt requested to ensure delivery confirmation and to create a paper trail of your dispute. You can find the mailing addresses for the three major credit bureaus below:
- Equifax. Equifax Information Services, LLC, P.O. Box 740256, Atlanta, GA 30374
- Experian. Experian, P.O. Box 4500, Allen, TX 75013
- TransUnion. TransUnion Consumer Solutions, P.O. Box 2000, Chester, PA 19016
If you prefer to submit your dispute letter online, you can do so through Equifax, Experian, and TransUnion through each company’s portal.
Step 5 – Wait for the Response
The credit bureaus typically have 30 days to investigate your dispute. They will communicate with the creditor or information provider to verify the accuracy of the information. The credit bureau must update your credit report if the information is inaccurate.
If you provided additional information after your original claim, the bureau to whom you submitted your claim will have an additional 15 days to review your disputed items.
Tips for Writing a Credit Report Dispute Letter
A credit report dispute letter is a vital tool for safeguarding your financial reputation and ensuring the accuracy of your credit information. Some tips you can follow to improve your chances of writing a successful credit dispute letter include:
Other Ways to Dispute a Debt
While the credit dispute letter is an effective method for disputing errors, there are other ways to initiate a claim, which include the following:
Request a Validation of Debt
15 U.S.C § 1692g(b) states a debtor can inquire about the origin of a debt by writing and submitting a debt validation letter to the original creditor.
If the debtholder can’t obtain the original creditor’s name and address within 30 days, the debtor can have the debt taken off their credit report.
Wait Six Months from the Last Dispute
If the debtholder validates the debt by writing back with the original creditor’s information, you can consider waiting six months to try sending another debt validation letter.
Companies often sell their debts, so the new debtholder may not respond to your letter. Without a timely response, you can have the debt taken off your credit report.
Wait Seven Years for the Debt to Expire
15 U.S. Code § 1681(a)(4) states all debts expire after they’ve been on an individual’s credit report for seven years. After this period, you may have to submit an additional claim since the debt won’t be removed automatically.
Sample
Knowing how to write an effective credit dispute letter can help you confidently challenge erroneous information on your credit report. You can use the following credit report dispute letter template (which is available to download as a PDF or Word file) as a guide and tailor it to your situation:
Frequently Asked Questions
What should I avoid with credit report dispute letters?
When dealing with credit dispute letters, avoid submitting multiple disputes for the same item without providing new evidence or information, as it may lead the credit bureaus to dismiss your claims as frivolous.
Most importantly, avoid disputing accurate information on your credit report. Doing so can damage your credibility with the credit bureaus and make resolving genuine discrepancies in the future more challenging. Before you dispute anything, ensure that the information is actually incorrect.
What should I do if the credit bureaus don’t correct my credit report?
If the credit bureaus don’t correct the inaccuracies after your dispute, you have several options:
- Request an investigation reconsideration. Contact the credit bureaus and provide additional evidence to support your claim.
- File a complaint with the Consumer Financial Protection Bureau (CFPB). Lodge a complaint with the CFPB, which oversees credit reporting agencies and may help to resolve the issue.
- Consult an attorney. If your attempts to correct your credit report are unsuccessful, consider seeking legal counsel to explore your options for further action.
How long does it take to resolve a credit report dispute?
The credit bureaus have 30 to 45 days to investigate your dispute. Sometimes, the process may take longer if the investigation is complex or requires additional verification from the creditor.
Once the investigation is complete, the credit agency will notify you of the results and any changes made to your credit report.
Is an Experian credit report better than a TransUnion or an Equifax credit report?
All three credit bureaus provide comprehensive credit reports, so one isn’t better than the other. They use different methods to calculate credit scores, but they’re all credible credit agencies within the U.S. You can submit a credit dispute letter with any of the three major credit reporting agencies (TransUnion, Equifax, or Experian).