Resource Center

Credit Reports and Credit Score

Disputing Credit Reports

A credit report is a recorded history of all your credit activities. It lists all of your past and current loans and credit card accounts, the amount of any owed balances as well as your payment status history. A credit report also shows if any action has ever been taken against you because of unpaid bills such as a lawsuit or bankruptcy filing. Because businesses use this information to evaluate your applications for credit, insurance and employment, it is important that the information in your report is complete and accurate. If you plan to make a big purchase like a home, you should review your credit report before a mortgage lender does.

The Fair Credit Reporting Act (FCRA), enforced by the Federal Trade Commission (FTC), was written to promote accuracy and ensure the privacy of the information used in consumer reports. Under the FCRA, both the credit reporting agency (CRA) and the organization that provided the information to the CRA (usually the credit card company) must correct any errors or incomplete information in your report.

Follow these steps to correct any mistakes on your credit report:
  1. Get a copy of your credit report from each of the three major credit reporting agencies(CRA): Experian (www.experian.com); Equifax (www.equifax.com) and TransUnion (www.transunion.com).
  2. Send a written letter to each of the CRAs explaining what information you believe to be inaccurate. Include copies (not originals) of documents that support your position whenever possible. Provide your complete name and address and social security number, identify each item in your report you dispute, and request deletion or correction. Keep copies of your dispute letter and enclosures and anything else you send out.
  3. Send your letter with enclosures by certified mail and request a return receipt, so you can show the CRA received the correction informtion.
  4. The FCRA mandates that all the CRAs investigate the items in disbute — normally this is accomplished within 30 days — unless the CRAs consider your dispute to be frivolous. The CRAs must also must forward all relevant data you provide about the dispute to the credit card company. After the credit card company receives notice of a dispute from the CRA, it must investigate, review all relevant information and report the results to the CRA.
  5. If the disputed information is found to be inaccurate, the credit card company must notify all the CRAs nationwide so they can correct this information in your file. Disputed information that cannot be verified must be deleted from your file.
  6. When the investigation is complete, the CRA must inform you of the results in writing and give you a free copy of your report if any changes were made as a result of the dispute investagation. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the credit card company verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the credit card company.
  7. In addition to the CRA, you should also write to the credit card company about the error.

Again, include copies of documents that support your dispute. If you are correct — meaning the information you disputed is found to be inaccurate — the credit card company cannot use it again. Further, at your request, the CRA must send notices of corrections to anyone who received your report in the past six months.