Checking your credit score is good personal finance hygiene. 🧖 In today’s world, credit report errors are stinking things up and causing some major finance B.O. 🙊♨️
According to the FTC, between 2019 and 2023, consumer complaints regarding credit-report issues increased by a whopping 4x! 🤯 If that blip on your credit report is bogus, nip it in the bud ASAP.
Here’s Five Fast Facts on how to correct an error on your credit report:
- 👀 Look Alive - First thing’s first: make sure you’re reviewing your credit report on a regular basis to catch errors as quickly as possible. While you could use a site like Credit Karma, try using www.annualcreditreport.com instead. It’s federally authorized and you can get weekly copies of all three credit reports sent to you automatically.
- 🕵️ Whose Line Is It Anyway? - If you discover an error on your report, the next step is to figure out whether it’s from a furnisher (credit card company, mortgage lender, etc.) or the credit-reporting company. Next, reach out to the responsible party directly to initiate a dispute. Before you make the call, make sure you have the documentation to back up your claim, like a bank statement proving your on-time payment, an identity theft report, or an email from a debt collector confirming your payment arrangements.
- 🐌 Snail Mail for the Win - If you have to file a dispute with a credit-reporting company, you’ll find their contact information towards the end of your credit report. While it’s quick to file online, your best bet is to submit your dispute through certified mail and include a return receipt request. This way, there’s proof that you filed. In your dispute, include the following info: the consumer identification or report number on the credit report, all identifying details about your accounts, and specifics around what should be corrected.
- 🤞 Trust the Process - After you file a dispute, a credit-reporting company has up to 45 days to investigate the claim and they might reach out to you for more details. After the investigation is complete, they have five days to let you know their decision. If a furnisher corrects an error after a dispute, they’re responsible for sending the updated information to the credit-reporting companies.
- 🥨 Here’s the Twist - Filing a dispute doesn’t guarantee your error will be fixed, even if you do everything by the book. If your dispute is denied, you can file a complaint with the CFPB at ConsumerFinance.gov or by calling them at 855-411-2372. If all else fails, you can draft a written statement to explain the error and submit it to the credit reporting company. While this won’t fix the error or boost your score, creditors may see it when they review your reports in the future.
🔥Bottom line: Pro tip: don’t fall for the TikTok credit repair companies. The industry is chock-full of scammers who promise to fix your credit report problems for a price. Don’t pay them your hard earned cash to do what you can do for free. Thinking of lending a family member money? Check out this article for our two cents.
Have you ever discovered an error on your credit report?
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