Short answer: get your free reports from Equifax, Experian and TransUnion at AnnualCreditReport.com, which now offers them every week (FTC). Look for the errors listed below, and dispute any you find with the credit bureau and with the company that reported it (CFPB). A bureau has 30 days to investigate a dispute, and up to 15 more in some cases (15 U.S.C. 1681i), so check well before you apply.
Where to get your reports
- AnnualCreditReport.com is the place to request free copies from the three national bureaus; other sites may charge you or be fraudulent sites set up to steal your information (FTC).
- Get the reports from all three bureaus and check each one.
- Checking your own report is not the same as a lender's check when you apply; see does applying for a loan hurt your credit.
What to look for
Common errors, as the CFPB groups them (CFPB):
| Type | What to check |
|---|---|
| Identity | Wrong name, phone number or address; accounts of someone with a similar name (a mixed file); accounts opened through identity theft |
| Account status | Closed accounts shown as open; shown as owner when you are only an authorized user; late payments you did not make; wrong date of last payment, date opened or date of first delinquency; the same debt listed twice, possibly under different names |
| Data | Wrong current balance; wrong credit limit |
How long negative items can stay
The Fair Credit Reporting Act limits how old an item can be and still appear on a report (15 U.S.C. 1681c(a)):
| Item | Can be reported for |
|---|---|
| Bankruptcy cases | 10 years from the order for relief or adjudication |
| Accounts placed for collection or charged off | 7 years |
| Civil suits and judgments | 7 years from entry, or until the statute of limitations runs out, whichever is longer |
| Paid tax liens | 7 years from payment |
| Most other negative items (not criminal convictions) | 7 years |
Late payments that are accurate are not errors; what a missed payment does is covered in what happens if you miss a loan payment. An item older than these limits is worth disputing.
How to dispute an error
- Write to the credit bureau. Include your full name and address, each mistake and why it is wrong, copies (not originals) of documents that support you, and a copy of your report with the mistakes circled (FTC).
- Write to the company that reported it with the same details and copies (FTC, CFPB).
- The investigation is free. The bureau must reinvestigate at no charge and record the current status or delete the item (15 U.S.C. 1681i(a)(1)).
- Get the result in writing. The bureau must send it within 5 business days after it finishes, and if the dispute changes your report, a free copy of the report (15 U.S.C. 1681i(a)(6), FTC).
- If it is not resolved, you can ask for a statement of the dispute to be included in your file and in future reports (FTC).
The timeline, with dates
Example: the bureau receives your dispute on Monday, November 2. Periods are counted from the day the bureau receives it (our count, weekends skipped for business days; holidays can add days):
| Step | Rule | Deadline |
|---|---|---|
| Bureau tells the company that reported the item | Within 5 business days (1681i(a)(2)) | Friday, November 6 |
| Investigation ends | 30 days (1681i(a)(1)(A)) | Tuesday, December 1 |
| If you send more relevant information during the 30 days | Up to 15 more days (1681i(a)(1)(B)) | Wednesday, December 16 |
| Written result, if it ends on day 30 | Within 5 business days (1681i(a)(6)) | Tuesday, December 8 |
In this example the written result can arrive about five weeks after the bureau gets your dispute, or later if the period is extended. If you plan to borrow, check your reports first and leave time to fix errors before you apply.
If your reports are frozen
A security freeze stops a bureau from sharing your report, and a lender may treat an application as incomplete while it is in place. Lifting it is free: within 1 hour of a request by phone or online, or within 3 business days of a request by mail (15 U.S.C. 1681c-1(i)).
If a bureau or the company that reported an item does not fix a real error, you can file a complaint (how to file a complaint). To build your file over time, see how credit builder loans work.
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Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.
Sources
- FTC: You now have permanent access to free weekly credit reports (October 2023)
- CFPB: What are common credit report errors that I should look for on my credit report?
- FTC: Disputing Errors on Your Credit Reports
- 15 U.S.C. 1681i: Procedure in case of disputed accuracy (Fair Credit Reporting Act)
- 15 U.S.C. 1681c: Requirements relating to information contained in consumer reports
- 15 U.S.C. 1681c-1: Identity theft prevention; fraud alerts and security freezes