Credit report errors cost you money. A mistake on your record could boost your interest rates, tank your credit score, or get you denied for loans and credit cards you qualify for. The good news: disputing inaccuracies is free and straightforward.
Start by getting your credit report. You're entitled to one free report annually from each of the three major bureaus—Equifax, Experian, and TransUnion—through AnnualCreditReport.com. Pull all three. Errors sometimes appear on one bureau's file but not the others.
Review each report carefully. Look for accounts you don't recognize, wrong balances, missed payments you actually made on time, and accounts listed as open when you closed them. Mark everything that looks wrong.
File a dispute directly with the credit bureau reporting the error. You can dispute online through each bureau's website, by mail, or by phone. Most bureaus allow disputes at no charge. Include specific details: the account number, what's wrong, and copies of supporting documents like bank statements or payment receipts. The bureau must investigate within 30 days.
The bureau will contact the creditor or lender to verify the information. If the creditor can't prove the entry is accurate, the bureau removes it. Many mistakes get corrected this way because creditors fail to respond or can't document their claims.
If the bureau doesn't fix the error or you disagree with their findings, file a complaint with the Consumer Financial Protection Bureau (CFPB). This triggers another investigation. You can also send a formal letter explaining your position to be added to your credit file permanently.
Some people hire credit repair companies for this work. Don't. They charge hundreds of dollars for a process you can do yourself in an hour. They have no special power the bureaus won't grant you.
Follow up. Request an updated credit report 30 days