How to Dispute Credit Report Mistakes

Regardless of whether you have good credit or bad credit, it's bound to happen - a credit report error. While you can't prevent a reporting error, there are ways to rectify the situation. You'll need to act fast, and you'll need to be persistent.

It doesn't matter if a creditor or the credit bureaus made the mistake, it can take months to fix a credit report error. And if you don't stay on top of the creditor, the error will likely remain on your report for seven years..

• Get a Free Credit Report: If you haven't already done so, order a copy of your credit report. Each consumer is entitled to one free report a year. Read the report and circle unfamiliar accounts or report errors.

• Call the Creditor and Have Them Fix the Problem: Sometimes, it only takes one call to the reporting creditor to fix an error. If you paid a bill in full, provide proof such as a statement or canceled check.

• Write a Dispute Letter: When the reporting creditor doesn't want to cooperate, it's time to involve the credit bureaus. Write a letter and provide a detailed explanation. Was the debt paid? Do you recognize the account? By law, the bureaus have to conduct an investigation. They may request additional information from you. If so, it's your responsibility to provide any paperwork that'll help the investigation.