Your credit report is what lenders use to determine your creditworthiness. Errors in that report can negatively affect your ability to secure loans, rent an apartment, or even get a job. That’s why you should review your credit reports regularly and dispute any inaccuracies you find. But what happens after you’ve filed your dispute? Read on to find out.

Have You Properly Filed Your Dispute?

The first step you should take if you notice errors on your credit report is to formally dispute the inaccurate information with the credit bureau: Equifax, Experian, or TransUnion. Simply calling them won’t suffice; you must send a written dispute with specific details about the error. Ensure you provide your full name, current and previous addresses, date of birth, and Social Security number to help the credit bureau locate your file.

You’ll also need to include the name of the creditor or company that reported the inaccurate information, along with the associated account number, if applicable. Clearly explain what is wrong. You can say something like, “This account was reported as late, but the payment was made on time.”

Be sure to include copies of any documents that support your claim, such as account statements showing timely payments, canceled checks, or affidavits if the account isn’t yours. While you can submit disputes online, sending the dispute via certified mail with a return receipt requested is highly recommended. This way, you’ll have proof that the credit bureau received it.

What Is the Investigation Time Frame?

Once the credit bureau receives your dispute, they are legally required to investigate within 30 days under the Fair Credit Reporting Act. During this period, they will contact the creditor or data furnisher who reported the information and request verification. While the investigation is underway, the disputed information cannot be reported as verified, and it will be marked as “under investigation” or “disputed” on your credit report. This alerts lenders and other entities reviewing your credit to the potential error.

What Are the Possible Outcomes of Your Dispute?

After the investigation, there are two possible outcomes:

• Accurate Information: If the creditor confirms that the information is accurate, the dispute will be closed, and the information will remain on your credit report. The credit bureau is required to notify you in writing of the results, including the name and contact information of the creditor who provided the data.
• Inaccurate Information: If the creditor agrees that the information is incorrect, the credit bureau will correct or remove the item from your credit report. You’ll be notified of the changes in writing, and the updated information should appear on your report shortly thereafter.

What if the Information Is Verified as Accurate?

If the creditor verifies the disputed information as accurate, but you still believe it’s wrong, you can request a reinvestigation. Provide additional evidence or more detailed explanations to support your claim. Even if the dispute is not resolved in your favor, you have the right to add a “statement of explanation” to your credit report. This statement, which is typically limited to 100 words, allows you to explain the circumstances surrounding the disputed item. For example, you might explain that a late payment occurred due to a medical emergency or job loss.

Stay on Top of Your Credit Reports

Disputing a credit report error can take time, but it’s essential for protecting your financial health. By following the process and being persistent, you can ensure the accuracy of your credit report, which can improve your chances of securing favorable credit terms in the future. Remember to check your credit report at least once each year to make sure it’s accurate and up to date.

While credit report errors can be frustrating, knowing what to expect after filing a dispute can help you stay calm and informed. Staying proactive, organized, and patient can go a long way in protecting your credit and your financial future.

Want more tips on maintaining good credit? Contact us today for personalized advice.