Your credit report contains important information about your borrowing and payment history. Lenders may use this information when reviewing applications for credit cards, personal loans, mortgages, and other financial products.
But what happens when something on your credit report is wrong?
A credit report error can be as simple as an incorrect account balance or payment date, or as serious as an account that does not belong to you. Even a small mistake can potentially affect how lenders view your credit history.
Fortunately, consumers can review their credit reports and dispute information they believe is inaccurate or incomplete. Understanding how to identify and challenge an error can help you keep your credit information accurate.
What Is a Credit Report Error?
A credit report error is inaccurate, incomplete, outdated, or incorrectly reported information appearing on your credit report.
Credit reports can contain information about credit cards, personal loans, payment history, account balances, credit limits, collections, and other credit-related activity.
Common errors can include:
- An account that you never opened
- An incorrect account balance
- A payment incorrectly reported as late
- A wrong payment date
- An incorrect credit limit
- An account listed as open when it was closed
- Duplicate accounts
- Personal information that belongs to someone else
- A debt that has already been paid but is still reported incorrectly
- Negative information that is reported inaccurately
Because credit reports contain detailed financial information, reviewing them regularly can help you notice problems before they create complications.
Why Can a Credit Report Error Matter?
Credit report information can be used by lenders and other businesses when evaluating applications.
An inaccurate late payment, high balance, or account that does not belong to you could make your credit profile appear different from your actual financial history.
For example, suppose you always paid your credit card on time, but your credit report incorrectly shows a missed payment. That information could create a misleading picture of your payment history.
If you are interested in how reported payment information can affect your credit profile, you can also read How Does a Late Credit Card Payment Affect Your Credit?.
The important point is that you should not assume every piece of information on your report is automatically correct. Checking your reports gives you an opportunity to identify potential mistakes.
How Do You Find an Error on Your Credit Report?
The first step is to obtain and review your credit reports.
When reviewing your report, pay attention to the details of every account. Check the creditor name, account status, balance, credit limit, payment history, dates, and other information.
Also look for accounts or inquiries you do not recognize.
It can help to compare the information on your credit report with your own records, such as account statements, payment confirmations, loan documents, and correspondence from creditors.
Do not focus only on your credit score. Your score is a number, while your credit report contains the underlying information that may have contributed to that score.
What Should You Do If You Find an Error?
If you find information that you believe is inaccurate, gather supporting documentation before submitting a dispute.
For example, if your report incorrectly shows a late payment, you might collect a bank statement or payment confirmation showing that the payment was made on time.
If an account does not belong to you, keep any documentation that supports your position.
The more clearly you can explain the problem and provide relevant evidence, the easier it may be for the company reviewing the dispute to understand what you are challenging.
How Do You Dispute a Credit Report Error?
You generally dispute inaccurate information with the credit reporting company that provided the report and, when appropriate, the company that supplied the information.
Your dispute should clearly identify the information you believe is incorrect.
Include details such as:
- The name of the account or creditor
- The specific information you believe is inaccurate
- Why you believe it is incorrect
- What the correct information should be
- Copies of relevant supporting documents
Keep copies of everything you submit, including your dispute, supporting documents, and any responses you receive.
You should also check the reporting company’s instructions for submitting a dispute because the available process can vary.
Can You Dispute an Incorrect Late Payment?
Yes, if a late payment is being reported inaccurately, you can challenge the information.
For example, you may believe a payment was made before the due date, but the credit report shows it as late. In that situation, review your payment records and compare them with the information appearing on your report.
If your records support your position, include appropriate documentation with your dispute.
However, there is an important distinction between inaccurate information and information you simply dislike.
If a late payment actually occurred and was reported accurately, disputing it does not automatically make the information removable.
A dispute is intended to correct inaccurate or incomplete information, not erase accurate negative information.
What Happens After You Submit a Dispute?
After receiving a dispute, the relevant company generally reviews the information and investigates the issue.
The result may be that the information is corrected, updated, removed, or determined to be accurate.
If the information is verified as accurate, it may remain on your credit report.
This is why documentation is important. If you have evidence supporting your dispute, make sure it is clear and relevant to the specific error you are challenging.
What If the Error Is Causing a Credit Score Change?
A credit report error does not always produce the same effect on every person’s credit score.
Credit scoring models consider multiple factors, and the impact of correcting a particular piece of information can vary.
For example, changes to reported balances can affect credit utilization, while changes to payment history may affect another part of your credit profile.
If you recently paid off a credit card and noticed a score change, it may also be useful to understand why your credit score can drop after paying off a card. A score change does not automatically mean that your credit report contains an error.
Check Your Statement and Reporting Dates
Timing can sometimes make credit information confusing.
A credit card balance may be reported at a particular point in the billing cycle rather than immediately after you make a payment. This means your credit report may show a balance that looks different from what you currently owe.
Understanding statement timing can help you distinguish between an actual reporting error and a normal difference caused by when information was reported.
For more information, see The Statement Date Trick Nobody Tells You About.
How Can You Prevent Credit Report Problems?
You cannot prevent every reporting error, but regular monitoring can help you catch problems earlier.
Consider these habits:
- Review your credit reports regularly.
- Check account balances and payment history.
- Confirm that personal information is correct.
- Watch for unfamiliar accounts.
- Keep payment confirmations and account statements.
- Review your reports before applying for major credit.
- Act promptly when you discover inaccurate information.
- Keep copies of disputes and supporting documents.
You should also avoid ignoring unfamiliar accounts. An account you do not recognize could be a simple reporting mistake, but it could also indicate potential identity theft.
Can a Credit Report Error Be Removed?
If information is inaccurate, incomplete, or cannot be properly verified, it may be corrected or removed through the appropriate dispute process.
However, accurate negative information generally does not become removable simply because it is inconvenient.
The goal of the dispute process is to make sure your credit report accurately reflects your financial history.
That distinction is important because legitimate credit problems usually require a different approach, such as improving payment habits, reducing balances, or managing debt responsibly.
Final Thoughts
A credit report error can create an inaccurate picture of your financial history, but reviewing your reports regularly can help you identify problems.
If you find an error, first understand exactly what information is incorrect. Then gather supporting documentation and submit a clear dispute through the appropriate process.
Pay attention to account balances, payment history, dates, credit limits, and unfamiliar accounts. Keep records of your communications and check your report again after the dispute has been reviewed.
Maintaining accurate credit information is an important part of managing your overall financial health. For more practical money and credit guidance, you can also explore the CoreFoxes .
Frequently Asked Questions
What is the most common credit report error?
Common errors can include incorrect account balances, inaccurate payment history, duplicate accounts, incorrect account status, and accounts that do not belong to the consumer.
How do I dispute an error on my credit report?
Identify the incorrect information, gather supporting documentation, and submit a dispute to the relevant credit reporting company and, when appropriate, the company that supplied the information.
Can I dispute a late payment on my credit report?
You can dispute a late payment if you believe it was reported inaccurately or incompletely. Supporting documentation can help explain why the information is incorrect.
Can accurate negative information be removed?
Accurate negative information generally cannot be removed simply because you do not want it on your report. The dispute process is designed to address inaccurate or incomplete information.
How often should I check my credit report?
Regularly reviewing your credit reports can help you identify inaccurate information, unfamiliar accounts, and other potential problems as early as possible.
