How to dispute an error on your credit report

Disputing genuine errors is free, it works, and you do not need anyone's help to do it. What does not work is disputing accurate information, which is the entire business model of most companies charging you for this.

First: is it actually wrong?

This is the whole game. A dispute is a claim that reported information is inaccurate or unverifiable. Accurate negative information is not removable, and no letter, service or "credit sweep" changes that. Things that genuinely go wrong all the time:

• An account that is not yours (including mixed files — same name, different person).
• A balance or limit reported wrong.
• A status wrong: shown as late when it was paid, or open when it was closed.
• A duplicate — the original account and the collection both showing a balance.
• Dates wrong, particularly the date of first delinquency, which controls when it drops off.
• An account included in bankruptcy still reporting as owing.

The process, in order

1. Get all three reports. They are free and they differ; an error on one is often not on the others. Use the official free source, not an ad.
2. Write down exactly what is wrong, item by item. One specific, documented inaccuracy per dispute beats a list of grievances.
3. Gather your proof. Statements, payoff letters, a police report for identity theft. Send copies, never originals.
4. Dispute with the credit reporting agency showing the item, in writing, with tracked delivery. Keep the receipt: their clock starts when they receive it.
5. Dispute with the furnisher separately — the lender or collector reporting it. Both routes matter, and the furnisher is the one who has to correct the source.
6. Wait out the investigation. Generally 30 days from receipt, extendable to 45 in some circumstances, including when you send extra documents mid-investigation.
7. Read the result. If the item is corrected or deleted, get the updated report. If it is "verified as accurate", you can request a description of the procedure they used and who verified it — and you can add a statement of dispute to your file.

The one thing that gets a dispute thrown out

Vagueness. "This is not mine" with no detail and no documents gets closed, sometimes as frivolous, and you have burned the process on that item. Say what is wrong, say what the correct information is, and attach the thing that proves it.

Two things worth knowing

• Nobody can legally remove accurate information, and nobody can do this faster than you can. Companies that promise otherwise are charging you for a form letter and, often, for disputing accurate items in bulk — which can get every dispute in your file dismissed.
• A collector's letter is not proof of a debt. If a collection account is new to you, ask for validation in writing before anything else, and never make a payment to establish good faith. A payment can restart the clock on an old debt in many states.

This is financial education, not legal, tax or investment advice, and it is not a recommendation for your specific situation. Rescue My Finances is not a credit repair organization, debt settlement company or credit counseling agency. See our disclosures.