How to Dispute an Error on Your Credit Report
Most people looking to buy a car, rent a house, or obtain a mortgage understand the importance of their credit score. It can literally make or break your ability to get the financing you need to live the life you want.
Unfortunately, many don’t even know their score until they need it, and only then discover that something is terribly wrong – they get turned down on a loan, or have to pay much higher interest rates and monthly payments because of a poor credit score.
Negative items on your report will have the most harmful impact on your credit score. Just one 30-day late payment or collection can pull your score down by 60 to 110 points.Worse, many people are shocked to learn how many inaccurate items make it onto their credit reports. And unless those inaccurate items are found and disputed, they will remain on your credit report for up to seven years.
But the law is on your side. Credit bureaus have a responsibility to provide accurate information about consumers, and are required to have a dispute process so consumers can get their credit reports fixed.
Under the Fair Credit Reporting Act, if you dispute an item on your credit report and the credit reporting agency cannot verify the item’s accuracy or if the item is proven to be inaccurate, the item must be removed from your credit report 30 days after the dispute has been received by the bureau.