Errors on your credit report can negatively affect your overall credit score. The most common complaint consumers make is the inclusion of incorrect information in the credit report.
A study conducted by the Federal Trade Commission found that 26% of people found an error on their credit report which could endanger future borrowing by making them seem riskier to lenders.
These ‘small’ mistakes result in higher-interest loans for mortgages, car payments, and other new credit lines. Here’s everything you need to know about disputing errors on your credit report.
Common credit score errors
Make sure your credit score report is in your name and that any new lines of credit you apply for are under a consistent first and middle name. Otherwise, your credit report could have entries for a person who shares a similar name.
If you’ve been denied a loan, it could be due to your credit report not reflecting all your credit lines. Some creditors don’t voluntarily provide credit information to bureaus, since it’s not a legal requirement for them to do so. If your creditor doesn’t report information to bureaus, consider moving to a creditor who does.
Other errors could include clerical mistakes and identity theft. If you find any suspicious spending on your credit report, you should dispute it immediately.
How to initiate the dispute
If you notice errors on your credit report, you need to get in touch with the bureau that published it. If you let these errors slide, it negatively influences your FICO score.
You need to outline the specific data that you believe to be inaccurate. The bureau then investigates it within a month’s duration, unless they find your dispute to be lacking.
The bureau will require copies of the documents that validate your argument. Our credit repair experts can help you with all aspects of the dispute.
How disputes affect your credit score
Your credit score is likely to improve if credit report errors are corrected. However, that’s not always the case.
Many people believe that closing a credit card account will improve their credit report, but it won’t. Your credit card information and payment history will still be displayed on the credit report. Changing personal information (such as your employer or address) doesn’t affect your credit score either.