Here’s a guide for clearing up credit report mistakes.
Do one thing: Don’t wait until you are applying for a loan to check your credit reports. If you find errors, it could take several months to resolve any potential issues. Dispute credit report errors immediately.
When Disputing Credit Report Errors, Persistence Matters
We get it. Trying to keep up with your credit reports (much less dispute errors) can feel time-consuming and maybe even a little overwhelming. But the truth is, once you go through your online reports from the three main credit reporting bureaus – Equifax, Experian, and TransUnion – to search for errors, clearing up those issues doesn’t have to be as daunting as you might think.
Joon Um, CFP, with Secure Tax & Accounting in Beverly Hills, says one common issue he sees with clients is paid-off debt still showing as balances or late payments after an issue was resolved. “Those usually can get fixed,” he explains, “but persistence matters.”
Where to Get Your Credit Reports
First things first. If you are not in the habit of checking your credit reports:
The best way to make sure you see everything on your credit reports is to get a copy from all three bureaus, says Michael McMeans, CFP, of Silverling Financial in Columbus, Ohio. “Just because your credit is right in one does not mean it’s right in all three,” he explains. “Your goal is to review all three reports and make sure everything on there is actually yours.”
If you find something that’s incorrect, McMeans says you should:
Real Life Example: If you went through a divorce and are not responsible for some of the issues on a credit report, you can also call the bureau that reported the error(s) and explain which items are yours and which are not, McMeans says, noting you will likely be asked to provide proof in the form of court documents.
Learn more about common credit report errors and how to fix them.
After reporting any errors to the credit bureaus that published them, you should also contact the business that supplied the information to the credit agency, according to the Federal Trade Commission. Those businesses would include credit card issuers, other lenders, landlords, etc.
“The bottom line is that your credit can and should be managed, and at least once a year, you should be sure to check it in this way,” McMeans says. “In my experience, calling in goes a bit further than entering a dispute online. But I would start online.”
Here’s how to get in touch with the three main credit reporting bureaus to dispute errors.
Here is some of Um’s best guidance for fixing errors on your credit reports:
When it comes to resolving disputes, it’s best to think of it more as a marathon than a sprint. While most investigations are supposed to finish in about 30 days, the truth is it can take longer – much longer. It can take up to six months for the dispute to be handled and for your score to reflect that new information, notes McMeans.
If it has been a while since you checked your credit reports, there could potentially be erroneous data that has been left unchecked for quite some time. Unfortunately, the older an incorrect piece of credit history data is, the harder it is to change it or even track down the proof you have to dispute the claim.
Generally, it doesn’t take long to review your credit reports, and once you do the hard work of correcting everything that’s not right, McMeans says, the annual workload should be quite low. That said, it’s work most people can do, meaning you don’t need to pay someone else to manage your credit for you. “If you do the work,” he says, “the benefit to you will be great.”
With reporting by Casandra Andrews