06 Feb How To Dispute Credit Report Errors

It’s never fun checking your credit report and spotting an error. It can be a truly disheartening experience. Errors can negatively impact your credit score, making it harder to qualify for loans, mortgages, and even good insurance rates. Spotting an error can be a shock, and lead to questioning your financial security, especially if the error is significant. The question is, what kind of errors are there, what do they mean, and how does one identify them? How do you dispute errors and incorrect information on your credit report? The meticulously researched and legally backed up information to follow answers all these questions and more.

How to dispute an incorrect credit report?

If you find errors on your credit report, you have the right to dispute them and get them corrected. Here’s a step-by-step guide on how to do it:

1. Identify the error

Obtain a free credit report from Credit Boost. Then, carefully review the report and identify any inaccurate, outdated, or incomplete information. This could include incorrect personal details, accounts you don’t recognize, or negative listings that shouldn’t be there.

2. Contact credit bureaus

Once you’ve identified the error(s), Credit Boost will help you contact major credit bureaus, like Transunion (formerly ITC) or Experion.

3. Submit a dispute

We’ll provide you with a dispute form to fill out. Make sure to provide clear and concise details about the error, including the specific information you believe is incorrect and why.

4. Wait for the investigation

The credit bureaus have 21 business days to investigate your dispute. They will contact the data furnisher (the company that provided the information) and ask them to verify it. After, you’ll be notified of the outcome of the investigation. If the credit bureau finds it in your favour, the error will be corrected on your report. If they find against you, you have the right to request a review of the decision.

5. If you’re unhappy with the results, we’ll help you escalate

If you are unhappy with the outcome of the credit bureau’s investigation, we can escalate your complaint to the Credit Ombud. This is a free and independent service that helps resolve disputes between consumers and credit bureaus.

Remember to keep copies and backup copies of all written communication between you, the bureaus, and Credit Ombud. Also nota bene: Do not apply for credit while your dispute is pending, as this could negatively impact your credit score.

What kind of credit report errors are there?

Credit report errors come in all shapes and sizes. These are some of the more prevalent ones to watch for.

Personal information errors

These seemingly minor mistakes can have a domino effect, impacting your ability to verify your identity and potentially leading to further errors.

Incorrect name, address, or date of birth

You should always be sure that your full and reported names, date of birth, ID number, and reported addresses are correct. This helps to verify your identity and protect against fraud.

Mixed files

Sometimes, information belonging to someone with a similar name gets mixed into your report, creating inaccurate accounts or payment histories.

Account Information Errors

Inaccurate account details

This could include listing an account you’ve never opened, misreporting account status (open vs. closed), or showing incorrect balances or credit limits.

Duplicate accounts

The same account appearing multiple times can inflate your credit utilisation, thus negatively impacting your score.

Incorrect payment history

Late payments or missed payments being reported inaccurately can significantly lower your credit score.

Identity Theft

Unauthorized accounts opened in your name

This is quite a serious error and may involve contacting law enforcement.

Fraudulent activity on existing accounts

Appearing as unauthorized charges, account takeover, or attempts to manipulate your credit history., fraudulent activity can have a serious impact on your credit.

Outdated Information

Accounts remaining listed after closure

Closed accounts should be removed from your report after a certain period, but sometimes they overstay their welcome.

Negative information exceeding reporting limits

Adverse accounts like late payments have reporting time limits, and keeping them beyond counts as an error.

Example

Sam last checked his credit report in 2018. Back then, he only had 18 revolving (credit card) credit accounts. Since the credit card boom of 2021–when cardholders started offering more benefits than ever, like free airfare, quick cashback, and new perks–Sam has opened 4 new accounts. Fast forward to 2022. He decides to check his credit report after reading about bettering his credit health. Lo and behold, there are 2 new accounts he never opened, and his score is down by 150 points. He should have used Credit Boost to check his score.

It’s your right to dispute credit report errors

If you’ve identified one or more errors in your credit report, it’s important to dispute them and save your credit. Your credit dictates your financial freedom and how much you can borrow. Care for your financial future. Contact Credit Boost today