Your credit report affects more than loan approvals. It can influence the rates you pay, the deposits you are asked for and sometimes even rental decisions. When something on that report is wrong, it is worth fixing.
The good news is that federal law gives you clear rights to dispute errors, and you can do it yourself for free. This article explains how the process works, what the law allows and what to watch out for if you consider paying for help. It is general information, not legal advice.
Start by getting your reports
You cannot fix what you have not seen. Consumers can get free credit reports from Equifax, Experian and TransUnion every week at AnnualCreditReport.com. Weekly access was made permanent in 2023, so there is no reason to rely on an old copy.
Pull all three reports. Each bureau may have slightly different information, and an error can appear on one report but not the others. Read each report slowly and compare it against your own records, such as statements, payoff letters and settlement agreements.
What counts as an error
Common problems include:
- Accounts that do not belong to you, which can be a sign of identity theft or mixed files.
- Incorrect personal information, such as a wrong name, address or employer.
- Payments reported late when you paid on time.
- Paid or settled accounts still showing a balance.
- The same debt listed more than once.
- Incorrect account status, credit limits or dates.
It is just as important to understand what is not an error. Accurate, current, verifiable information cannot legally be removed simply because it is negative. A late payment that really happened, reported correctly, is not something a dispute can erase.
How the dispute process works
Under the Fair Credit Reporting Act, you can dispute inaccurate or incomplete information directly with the credit bureau that reports it. The bureaus generally must investigate a dispute within 30 days. Here is a practical approach:
- Identify each error clearly. Note the account name, account number (partial is fine) and exactly what is wrong.
- Gather proof. Collect copies, never originals, of documents that support your position.
- File the dispute with each bureau reporting the error. Each bureau accepts disputes online, by mail or by phone. Keep it factual and specific.
- Consider contacting the company that supplied the information. Lenders and collectors that report information also have responsibilities to correct errors.
- Keep records. Save confirmation numbers, copies of letters and dates for every step.
- Review the results. The bureau will tell you the outcome. If the item is changed, check your updated report to confirm.
If a dispute does not resolve the problem, you can ask to add a brief statement to your file or seek further help. The Federal Trade Commission offers consumer guidance at consumer.ftc.gov.
What credit repair companies can and cannot do
Anyone can dispute errors on their own for free. Some people prefer to hire help because they do not have the time or would rather have someone organize the paperwork. If you go that route, know your rights.
Federal law, through the Credit Repair Organizations Act, and Florida law prohibit charging for credit repair before the services are fully performed. Florida allows advance payment only if the company has a $10,000 surety bond and a Florida trust account. You should also receive a written contract and a statement of your rights before you pay anything.
Be cautious of any company that:
- Asks for payment up front without meeting the legal requirements.
- Promises to remove accurate negative information.
- Guarantees a specific score or result.
- Tells you to dispute information you know is correct.
- Suggests creating a new identity or using a different number in place of your Social Security number.
Building credit while you clean it up
Fixing errors is one part of the picture. Building positive history matters too. Paying every bill on time, keeping balances low compared to your limits and avoiding unnecessary new applications are habits that help over time. Results depend on your individual situation, and no one can guarantee a particular score.
If you run a business, separate your business and personal credit when you can. A D-U-N-S Number from Dun & Bradstreet is free to request and is one step toward establishing a business credit profile.
How we can help
Our credit repair and credit building services are provided through our partner, T and T Tax Services Inc. You receive a written contract and a statement of your rights, and you are billed only after work is completed. We do not promise specific results, and we will tell you plainly when an item is accurate and cannot be disputed.
If you want help reviewing your reports or building a plan, book a free consultation or call (772) 356-3550. We will walk through your options, including the ones you can handle on your own.
