A credit report summarizes information collected by a consumer reporting company about a person's credit history and related records. Lenders and other permitted users may use it when making decisions. Errors can therefore have practical consequences, and checking a report before a major application can give time to identify and challenge a problem.
In the United States, the three nationwide credit reporting companies are Equifax, Experian and TransUnion. Their files can differ because information is not necessarily reported to each in the same way. Checking one report is useful but does not establish that the others contain identical information.
Obtain and read your reports
The CFPB says consumers can obtain free reports online weekly from each of the three nationwide companies through AnnualCreditReport.com. A separate legal entitlement provides a free report from each company every 12 months. Additional free reports can be available in specific circumstances, including certain adverse actions, subject to applicable conditions. The report is not necessarily the same thing as a credit score.
Review identifying information, addresses, accounts, balances, payment history, inquiries and public-record information shown. An unfamiliar entry can have an innocent explanation, such as a lender operating under a different name, but it deserves investigation. Compare it with your own statements and records before deciding what to dispute. Avoid sharing the full report with people who do not need it.
Make the dispute specific
Identify each item, explain why it is inaccurate and state the correction or removal requested. Include copies of relevant supporting documents, not originals. The CFPB recommends disputing with the reporting company and the business that supplied the information, often called the furnisher. The report may identify the furnisher and a dispute address.
A written dispute creates a record. The reporting companies offer online, mail or telephone channels; if mailing, the CFPB suggests considering certified mail and a return receipt. Retain a copy of the report page with the disputed item marked, the letter, supporting documents and proof of submission. Provide enough information for the company to identify and investigate the item.
What happens next
The reporting company must generally investigate, forward relevant information to the furnisher and report the results. It can decline to investigate a dispute it reasonably determines is frivolous or irrelevant, such as one without enough information, and must provide notice explaining the decision. The furnisher generally must investigate and respond to a direct dispute within 30 days; particular circumstances and exceptions can affect timing.
If information is wrong or cannot be verified, the applicable process can lead to correction or removal. An investigation may also conclude that the information is accurate. A legitimate negative item is not removed simply because it is unfavorable. If you disagree with an outcome, the CFPB describes options including asking for a statement of dispute to be included in the file and submitting a complaint.
A practical record checklist
- Save the date and source of each report and note which companies show the item.
- Identify the account and the exact entry you believe is wrong.
- Collect copies of statements, correspondence or identity documents relevant to the error.
- Send a clear dispute to each reporting company showing the error and to the furnisher as appropriate.
- Keep submission receipts and review the results and updated reports.
If the entry suggests identity theft
An account you did not open can signal identity theft. The CFPB points consumers to IdentityTheft.gov for reporting and recovery guidance. Contact the affected company using independently verified contact information, and consider the available fraud alert or credit freeze options after understanding their effects. Preserve records and act promptly; the steps depend on what happened.
Credit files change over time, so repeat reviews can catch new issues. Be wary of anyone who promises to erase accurate information or demands sensitive details through an unexpected message. The U.S. process described here is not a substitute for the rules in another country.
If an application was recently denied or offered less favorable terms because of a report, keep the notice. It identifies the reporting company involved and can provide a route to an additional free report when requested within the applicable period. Compare that report with the notice before identifying the information you want investigated.