Your credit file is one of the most important pieces of information in your life. Vigorous protection of your credit is necessary in order to receive the best interest rates and get the most for your money. Sometimes keeping a clean credit file includes correcting inaccurate information, which can only be done by a creditor or credit bureau.
Reviewing Your Credit Report
You are allowed one free credit report from each of the three major credit bureaus--Experian, Equifax and TransUnion--per year as per the Fair Credit Reporting Act. Reviewing your reports from all three credit bureaus is essential because each report contains different information about your credit history. As you go through your credit reports, identify any information that is inaccurate, as this information can be disputed with the credit bureaus.
Preparing Your Dispute
You can dispute erroneous information by contacting the creditor directly or you can file an official dispute with the credit bureau. In either case, the creditor and credit bureau must communicate to verify information or to potentially reverse false information. Disputing with the credit bureau is easiest because it can be done online and without submitting any supporting documentation. However, since it's impossible to provide proof of your innocence over the Internet, this lack of evidence can also work against you.
Receiving a Response
After you file your dispute, the credit bureau has 30 days to respond to your inquiry. If you don't receive a response, the item in question should automatically be removed from your credit report. Regardless of the bureau's decision, or the creditor's decision if you filed your dispute with them, you will receive a written response detailing the results of the review. Note that if you filed your dispute online, you may receive an electronic summary of your dispute's results instead of a physical letter.
After the Dispute
Once you've received your response, what happens next depends on how your dispute turned out. If the item came back as verified, you can contact the creditor to plead your case. If your appeal was successful, you should see the item removed from your credit report within 30 days. Since most companies only report to the credit bureaus once a month, the removal process might take a little longer than you might expect. You will also receive an updated credit report that no longer shows the item you disputed.
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