How to dispute an error

Mistakes on credit reports happen more often than most people think. A wrong balance, an account that is not yours, or a late payment that was actually on time — these errors can hurt your credit score. The good news is that you have the legal right to dispute them. And the process is more straightforward than it sounds.

Step one is to get your credit reports. You can get a free copy from all three major credit bureaus — Equifax, Experian, and TransUnion — at AnnualCreditReport.com. This is the only federally authorized site for free reports. Download or print all three, because the same error might show up on more than one.

Step two is to find and mark the error. Look through each report carefully. Circle or highlight anything that looks wrong. Common errors include accounts you never opened, payments marked late that you made on time, a debt that was already paid but still shows as open, or someone else's information mixed in with yours. Write down exactly what is wrong and why.

Step three is to write your dispute letter. You do not need fancy language. Keep it simple and clear. Here is a basic format you can follow:

Start with your name, address, and the date. Then say something like: "I am writing to dispute the following information in my credit report. The item I am disputing is [name of account or creditor], account number [if you have it]. This information is inaccurate because [explain the error in one or two sentences]. I am requesting that this item be corrected or removed."

That is really all you need. Be direct. Do not get emotional or use threatening language. Stick to the facts.

Step four is to gather your proof. Attach copies — not originals — of any documents that support your claim. This could be a bank statement showing you made a payment, a letter from a creditor, or a receipt. Label each document clearly so it is easy to follow.

Step five is to send your dispute to the right place. You need to contact the credit bureau that is showing the error. Each bureau has its own dispute process.

Equifax: You can dispute online at Equifax.com, by phone at 1-866-349-5191, or by mail to Equifax Information Services LLC, P.O. Box 740256, Atlanta, GA 30374.

Experian: Dispute online at Experian.com, by phone at 1-888-397-3742, or by mail to Experian, P.O. Box 4500, Allen, TX 75013.

TransUnion: Dispute online at TransUnion.com, by phone at 1-800-916-8800, or by mail to TransUnion LLC Consumer Dispute Center, P.O. Box 2000, Chester, PA 19016.

If you mail your letter, send it by certified mail with return receipt requested. This gives you proof that they received it.

You should also consider sending a dispute to the company that provided the wrong information in the first place. This is called the data furnisher — usually a lender or collection agency. Send them the same letter and documents.

Step six is to wait and follow up. By law, credit bureaus generally have 30 days to investigate your dispute. They will contact the company that reported the information and ask them to verify it. If the company cannot verify it, the bureau must correct or remove it. You will get written results when the investigation is done.

If the dispute is resolved in your favor, ask for an updated copy of your report. If you are not satisfied with the result, you can add a 100-word statement to your report explaining your side of the story.

Disputing errors takes a little time and patience. But fixing even one mistake could improve your credit score and open doors to better financial options down the road. You have the right to accurate information — and using that right is a smart, empowering step.