How to Dispute Negative Items on Your Credit Report

If you find that one of your credit reports contains inaccurate information, you do have recourse to have the issue investigated and corrected. It is simply a matter of following the course of action each credit bureau stipulates. If your claim is warranted, you can indeed have your record reflect reality.

Instructions

1

Order a copy of your credit reports from each of the major credit bureaus: Experian, TransUnion and Equifax at 877-322-8228 or at annualcreditreport.com. You are entitled to one free credit report from each once a year.

2

Review the reports carefully and decide which items need disputing. Follow the instructions that the credit bureau provides. Provide a brief explanation as to why you are disputing the negative entry. Mail in your dispute.

3

Allow up to 30 days for the credit bureau to investigate. It has that time period by law to correspond back. You will find out the bureau has either removed the entry or that it was verified. If the latter, proceed to step 4.

4

Write the bank, creditor or collection agency reporting the negative entry. Ask for verification the debt is yours. Ask for a copy of the agreement you had and ask how the amount owed was calculated. Inform them they need to either prove you owe this debt or remove the entry from your credit report. Mail your letter. The creditor has 30 days to respond.

5

Send a follow-up letter, if you receive no response within the 30 days. Indicate that they are reporting invalidated information to the credit bureau. At this point, you can threaten to write the Federal Trade Commission as well as threaten legal action, if they don't comply. If the creditor did respond to your note, proceed to step 6.

6

Check the information carefully for discrepancies, if the creditor provided proof that you indeed owe the debt. For example, if an apartment complex responds that you owe $300 for a cleaning bill but does not provide a copy of a receipt for the services provided, you should write back and ask for the missing information. Explain that the proof provided was insufficient and ask the creditor to provide the information you requested or remove the entry from your credit report. Kindly remind them they are in violation of the Fair Debt Collection Practices Act if they don't comply. If you wish, you can threaten to file a lawsuit as well.

7

Contact the credit bureau when a debt comes back "verified" and ask how this was done. This is called asking for the "method of verification." Most credit bureaus do not make a thorough investigation due to costs and the large amount of disputes they receive. You can use this against the credit bureaus if they report your debt without sufficient proof.