How to Dispute Credit Report Errors and Improve Your Score

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How Does a Credit Report Dispute Work?

When you notify one of the national credit bureaus—Experian, TransUnion, or Equifax—about an inaccuracy in your credit report, federal law mandates that the bureau must complete an investigation within 30 to 45 days. This process is governed by the Fair Credit Reporting Act (FCRA), which allows you to dispute information on your credit reports at no cost.

Upon receiving your dispute, the credit bureau verifies your claim with the source, or “furnisher,” of the disputed information. Furnishers may include banks, credit card companies, and landlords. The FCRA requires the furnisher to conduct a reasonable investigation. If an inaccuracy is found, the furnisher must update its records, inform the credit bureau, and notify the other two national credit bureaus to correct the information.

If the furnisher concludes your dispute is invalid, it must notify the credit bureau. After the investigation, the credit bureau will provide a summary of the findings and actions taken. If you disagree with the outcome, you can add a statement to your credit report explaining your point of view. You also have the right to sue a bureau or data furnisher if you believe they have violated the FCRA.

How Long Will the Dispute Process Take?

The FCRA requires credit bureaus to complete dispute investigations within 30 to 45 days:

• 30 days: Credit bureaus must investigate and resolve disputes within 30 days of receiving them.
• 45 days: If you submit additional information during the standard 30-day investigation window, the bureau may take an additional 15 days, totaling 45 days, to complete the investigation. This also applies if you submitted a dispute after accessing your credit report via AnnualCreditReport.com.

Once the investigation is concluded, the bureau must notify you of the outcome and any actions taken within five business days.

How Long Does Negative Information Remain on My Credit Reports?

Negative credit report entries generally remain on your reports for seven years, except for Chapter 7 bankruptcy, which stays for 10 years. These entries include late payments, accounts in default, accounts turned over to collections, foreclosures, and Chapter 13 bankruptcy. The countdown for bankruptcy begins on the filing date, while the seven-year timeline for other entries starts from the first delinquent payment.

Negative entries can significantly impact your credit scores, especially when they are recent.

Should I Hire a Credit Repair Company to Speed Up the Process?

Credit repair companies cannot do anything that you can’t do yourself with a little effort. All three national credit bureaus offer online dispute submission. If you prefer mail, you can use a dispute letter template. Experian provides a downloadable form, and the Federal Trade Commission and Consumer Financial Protection Bureau offer sample letters for communicating with other bureaus.

Additional Actions That Can Improve Your Credit Score

If your credit report is accurate but you want to improve your credit score, consider these steps:

• Pay Every Bill on Time: Your payment history is crucial for your credit scores. Ensure you don’t miss loan or credit card payments by more than 29 days.
• Catch Up on Overdue Bills: While you can’t undo late payments, catching up on overdue bills can limit the damage.
• Pay Down Revolving Balances: High balances on credit cards can hurt your credit scores. Aim to keep your credit utilization ratio low.
• Apply for New Credit Sparingly: Limit how often you apply for new credit to avoid multiple hard inquiries, which can lower your scores.

For auto loans and mortgages, credit scoring models may ignore multiple inquiries within a short period, recognizing that rate shopping isn’t risky behavior.

The Bottom Line

Regularly reviewing your credit reports and disputing inaccuracies is essential. The process is straightforward and quick, with verified corrections made within a few weeks. Checking your FICO® Score from Experian can help you understand how credit report disputes and other decisions impact your creditworthiness.

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