Everything you need to know about credit report disputes

Finding an error in your credit report can be frustrating. These mistakes can have a negative impact on your credit score. Submitting a credit dispute to the reporting bureaus is the first step in the process of correcting inaccurate information and improving your score.

But what comes next? How do the credit bureaus correct the mistake? How does a dispute affect your credit score? Here’s the whole story of what happens when you submit a TransUnion dispute or a dispute to one of the other credit bureaus.

How do you dispute an investigation or other negative item on your credit report?

You have the right to a fair and accurate credit report. And you can dispute the information on your credit report if you think it’s not accurate. You can follow the steps for DIY credit disputes or work with professionals to get the job done. Typically, the process begins with a dispute of credit letter.

What happens after opening a dispute?

Although disputed information is reviewed by a credit bureau, it is usually not labeled as disputed on your credit report. And each of the three credit bureaus has its own dispute resolution process. They are all directed to the creditor or to the entity that provided the information in dispute as part of the investigation.

Conflicts of experience

When you file a credit dispute with Experian, EXPGY,
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the agency contacts the entity that provided the information. Usually it is the creditor.

The company that provided the information in question has 30 to 45 days from the date you submit your request to respond. In some states, the deadline may be shorter.

When Experian receives a response, it will notify you of the results of the survey. If it does not get a response within the allotted time, Experian will correct the disputed information as requested or remove the disputed information. During the investigation process, Experian does not add any comments, notes, or any other indication of a dispute on your credit report.

TransUnion dispute

TransUnion TRU,
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also follows up with the reporting entity. Based on the information you provided and the information provided by the creditor, the office makes a decision regarding the dispute.

How long does a dispute with TransUnion take? TransUnion typically completes an investigation and provides you with the results within approximately 30 days of receiving your dispute. But the company recommends being prepared to wait up to 45 days.

TransUnion does not note your credit report while an investigation is underway. It will modify the disputed information as you requested if the creditor does not respond on time.

Equifax Litigation

Equifax EFX,
informs you of the results of a dispute within 30 days. On average, disputes are resolved within 10 days.

Unlike the other two agencies, Equifax indicates that an item is in dispute on your credit report during the investigation.

Also see: Equifax says it will work with lenders and creditors to help reduce impact of coronavirus crisis on U.S. credit reports

On Equifax reports, the item will “be noted as’ Consumer Litigation – Re-Investigation Pending,” said Meredith Griffanti, senior director of public relations for Equifax. “If the consumer applies for credit during this period, the potential creditor will see this comment. “

Credit disputes with creditors

You have the right to dispute information that you believe is inaccurate on your credit report. The overall process of disputing inaccurate information with creditors is similar to that of disputing information with credit reporting agencies, but with one important difference. If you dispute an item directly with the vendor, it will most likely be noted as “disputed” on your credit report so that potential lenders can see it.

Once you submit a dispute, the creditor has a duty to investigate your claim, in accordance with the Fair Credit Reporting Act. In most cases, the creditor is expected to respond to your claim within 30-45 days and notify you of the results of their investigation within five business days.

The creditor should inform the credit reporting agencies that you have disputed information. If it finds that the information is indeed inaccurate, it should promptly provide accurate information to the reporting agencies. If you have received a notice that the creditor agrees with your dispute, send a copy of this documentation to the credit bureau that reported the information to make sure it is up to date.

What happens when you dispute something on your credit report and get turned down?

The initial investigation by the credit bureaus is not extremely thorough. This is like contacting the creditor or reporting entity and asking if the information is true. The documentation that the creditor must provide to verify the debt is usually not important. As a result, it is possible that your initial dispute will be denied and the inaccurate information may remain on your report.

When this happens, you can escalate the dispute by sending in additional information to advocate for your case. According to TransUnion, examples of supporting documents for a dispute include letters from the creditor, canceled checks showing payment, or specific invoices or statements that document your case.

One option that many people are considering is to work with a professional credit repair company. These companies do all of the same things that you can do on your own to dispute information. However, they tend to do them faster and with more aggressiveness and expertise, which can give you peace of mind and help make a positive outcome more likely.

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