Is It Better to Dispute Ownership or Accuracy?

A credit report details an individual’s financial history, including payment behavior, credit accounts, and public records like bankruptcies. Three major credit bureaus—Experian, Equifax, and TransUnion—compile these reports. Lenders, landlords, insurers, and some employers use this information to assess financial reliability for loans, housing, insurance, or job applications. Maintaining an accurate credit report is important for financial standing and access to services.

Understanding Credit Report Dispute Categories

When reviewing your credit report, you may find incorrect information, requiring a dispute. Errors fall into two categories: ownership disputes or accuracy disputes. Understanding this distinction is key, as it dictates the claim’s nature and required evidence, streamlining the resolution process.

An ownership dispute occurs when an account or information on your report does not belong to you. This includes identity theft, where accounts are opened fraudulently, or a “mixed file,” where another individual’s credit information is mistakenly merged with yours. If you have no knowledge of an account or it was opened without authorization, an ownership dispute is appropriate.

An accuracy dispute involves an account that legitimately belongs to you but contains incorrect details. This includes discrepancies like an incorrect account balance, a payment incorrectly marked as late, or a misreported account status (e.g., showing as closed when open). Other examples are incorrect dates, duplicate entries, or errors in personal information like an address. Misclassifying a dispute can lead to delays or rejection, as credit bureaus require different verification for each type.

Gathering Information for Your Dispute

Before initiating any dispute, gather all relevant information and documentation. Adequate evidence supports your claim and can expedite resolution; without it, your dispute may face delays or dismissal.

First, obtain copies of your credit reports from Experian, Equifax, and TransUnion. Federal law entitles you to one free copy from each bureau every 12 months via AnnualCreditReport.com, where you can also access free weekly reports. Reviewing all three reports is advised, as errors may not appear on every report.

Once you have your reports, meticulously review each section for inaccuracies. Highlight specific items, noting the creditor name, account number, and the exact error for each disputed item. This information is necessary for submission.

Next, collect supporting evidence to prove your claims.
For ownership disputes (e.g., identity theft), provide a police report or an Identity Theft Report from the Federal Trade Commission (FTC).
For accuracy disputes, evidence may include bank statements showing timely payments, canceled checks, payment receipts, or correspondence from the original creditor confirming correct information.
Other documents include letters from creditors indicating corrections or court documents for public records like bankruptcies.
Always send copies of documents, never originals, and retain your own copies for your records.

Initiating a Credit Report Dispute

With all information and documentation gathered, formally submit your dispute. You can file directly with the credit bureaus or the original creditor. Disputing with both simultaneously can be beneficial.

The most common methods are online through credit bureau websites or via mail. Online portals are fast and convenient, allowing immediate submission of your claim and documents. Each bureau has an online dispute center to select items, indicate reasons, and upload evidence. If disputing by mail, draft a letter stating the disputed item, account number, and error explanation. Include copies of supporting documents and consider certified mail with a return receipt.

Your submission should clearly identify the challenged item, reference the account number, and provide a concise explanation of the error. Request the item be removed or corrected. Credit bureaus are required by the Fair Credit Reporting Act (FCRA) to investigate disputes within 30 to 45 days. This period may extend if you submit additional documentation.

After submission, the credit bureau investigates, often by contacting the original creditor for verification. You will be notified of the results, which may include the item being updated, deleted, or verified. If inaccurate or unverifiable, it must be removed or corrected. Maintain a record of all communications, including dates and details.