How You Can Dispute Errors in Your Credit Report

Starting and running your own business can be highly rewarding. Of course, in order to get things up and running, you must be in good financial standing and finance your business. As a result, it’s important to check your credit report and dispute any errors you spot. Here are some tips on how to do just that.

How to Obtain Your Credit Report

The importance of obtaining your credit report cannot be overstressed. It’s essential to periodically check your credit report to make sure everything that appears in it is accurate information. Any discrepancies can lead to damage to your creditworthiness.

You can obtain free copies of your credit report annually from the three major credit bureaus: Equifax, Experian, and TransUnion. Thoroughly review all of the copies to ensure that everything is correct. If you do find mistakes, highlight them to take the necessary steps to dispute them.

How Can You Dispute Errors in Your Credit Report?

According to Lantern by SoFi, “no matter what types of small business loans you’re seeking for your business, errors present in your credit report can hinder your ability to qualify.” This is why it’s important to speak out by disputing those errors.

After you have gotten copies of your credit scores and found an error, make sure you know which credit bureau includes that mistake. You can then draft a letter to the credit bureau in question and explain in detail the specific error. Include copies of documents that provide evidence to back up your claims.

It’s important to remember to include all the pertinent information in your letter of dispute. Be clear and concise and include the following:

            •           Your full name and contact information, including your home address and phone number

            •           Your report confirmation number if you have it

            •           The specific errors present in your credit report and the account number for any account with an error

            •           A full explanation of the error and why you’re disputing it

            •           Make a request to have the incorrect information corrected or deleted from your credit report

            •           Include a copy of the credit report showing each error highlighted or circled

It’s wise to request that the dispute letter to the credit bureau be sent via certified mail. If you send it that way, make sure to request a return receipt so that you can be notified as soon as the credit bureau receives it. You can also follow up to ensure that your letter arrived at its destination by calling the credit bureau or contacting it online through the official website.

What Types of Errors Might Appear on Credit Reports?

When an error is present in a person’s credit report, it can be something simple or something more complex. Usually, the following appear as errors:

            •           Misspelling of your name, a wrong address or phone number or someone else’s information mistakenly mixed with yours

            •           Incorrect accounts or information that’s incorrect regarding your account, such as one that’s openly being listed as closed or in arrears

            •           Incorrect balance or credit limit

            •           Inaccurate information reappearing after it’s been corrected

Staying on top of your credit reports and reporting errors to have them fixed is the best way to ensure that your credit remains its best. You should hear back from the credit bureau after investigating, which can take up to 45 days.

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