A Credit Report is a rating based on the information given by banks and financial institutions to the credit bureaus. There are very many chances for errors while preparing your report. You are entitled to report any errors that you may find in your credit report.
There are two types of errors that you can report:
- Errors in your personal information like name, age, address, contact information, etc.
- Errors in your account information like credit card details, repayment history, loan account details, etc.
While errors in the first category don’t have any effect on your credit score, any mistakes in the second category do have a considerable effect on your credit score. So, it is evident that you dispute these errors with the credit bureaus to get them rectified.
What happens when you dispute something off your credit report?
When you raise a dispute request with the credit bureau, they send the information to the respective bank or financial institution for clarification. They take necessary action upon getting a response back from them.
There are two possible outcomes:
The first one is, the lender may reject the dispute citing proof from their records and hence the credit bureau may not remove or change the incorrect data that you have disputed.
The second one is where the bank accepts your dispute after verifying their records. In such cases, the credit bureau shall rectify your credit report to show the correct data.
While filing a dispute has no effect on your credit score, your credit scores can change if the information on your credit report changes after your dispute is resolved. Hence, one should check their credit score regularly and make sure to dispute any errors they may come across.