How to Dispute Negative Information on a Credit Report

Positive and neutral data in credit reports does not have to be disputed, even if there are mistakes, because it does not hurt your credit score. Experian, TransUnion and Equifax, the three national credit bureaus, sometimes report negative items that contain disputable information. The Federal Trade Commission or FTC explains that you have the right to complain about errors and initiate an investigation under federal law. The dispute process is free, although it has to be conducted separately with each bureau.

• 1

  Find the mistakes in the negative information. Check dates for account opening, payments, credit limits and balances. Scrutinize creditor names and addresses for misspellings or slight errors. You may not make frivolous disputes, according to the Divorcenet legal site, but you can legally challenge even minor issues.

• 2

  Summarize the disputed items in individual letters to each credit bureau. You may be challenging different items with each bureau because they collect and report their data independently. Give at least one reason for each dispute to show validity, Divorcenet advises, because bureaus often ignore general complaints.

• 3

  Add any available documentation to the letters. You are not required to enclose proof of the disputes, but it strengthens your position. The FTC states that you should send copies rather than originals. Send things like photocopied contracts, statements and receipts.

• 4

  Pay for certified mail with a return receipt, the FTC recommends. The credit bureaus have 30 days from the day they get your disputes to conduct their research. The receipt shows you when their time begins.

• 5

  Mark your calendar with a note to watch for dispute responses 45 days from the date you send your letters. This allows enough time for the credit bureaus to do research and make changes to their files. The bureaus must all send you summaries of their investigation outcomes and corrected reports. Write follow-up letters if you do not get a timely reply.