At O1ne Mortgage, we understand the importance of maintaining a healthy credit score, especially when you’re considering applying for a mortgage. Disputing inaccuracies on your credit report is a crucial step in ensuring your credit history is accurate and up-to-date. In this article, we’ll explore when and how to dispute credit report information, the potential outcomes of disputes, and how these changes can affect your credit score.

When Can I Dispute Credit Report Information?

Inaccuracies on credit reports are relatively rare, but they can occur. It’s wise to regularly check your credit reports with the three national consumer credit bureaus: Experian, TransUnion, and Equifax. You can check your Experian credit report for free anytime, and you can also get a free report from each of the credit bureaus annually.

If any of your reports contain information you feel is incorrect or that could be related to fraud or identity theft, consider filing a dispute with the relevant bureau. For example, the appearance of an unfamiliar loan or credit card account could be a sign of credit fraud. Before sounding alarms over a new account on your report, check that the entry doesn’t use a parent company name, initials, or acronym for an account you know by another name.

Does Filing a Dispute Hurt Your Credit?

Filing a dispute has no direct impact on your credit scores. However, if certain information on your credit report changes as a result of your dispute, your credit score can change. The nature of that change—whether your score goes up, down, or stays the same—depends on what you are disputing and the outcome of the dispute.

For example, disputing personal information that’s used mainly to confirm your identity, such as an incorrect name or an address at which you never lived, has no bearing on your credit scores. However, revisions to your payment history can have an impact. If a late payment is mistakenly reported on your credit report and you have it corrected through a dispute, your credit scores will likely improve.

Possible Outcomes of Disputes

The results of a dispute depend partially on the nature of the information in question. Outcome descriptions that may appear on your Experian credit report or in your Experian account notifications once the dispute is completed include:

• Added: This item was added to your credit report.
• Updated: The information you disputed has been revised on your credit report.
• Deleted: The item was removed from your credit report.
• Remains: The lender or source of the information has certified that the information is accurate, so the item has not changed.

How Long Will Information Stay on My Credit Report?

Different credit report entries last different amounts of time. Most entries that can negatively affect your credit scores, such as late or missed payments, foreclosures, and accounts placed in collections, will remain for seven years. Chapter 13 personal bankruptcies also stay on your credit report for seven years, while Chapter 7 bankruptcies remain for 10 years from the date you file for protection from the bankruptcy court. Credit inquiries typically remain on your credit report for 24 months.

Open accounts with positive credit history remain on your credit report indefinitely, while accounts closed in good standing will remain for 10 years.

What if I Disagree With the Outcome of My Dispute?

If you dispute an entry on your credit report and the data furnisher confirms the information as accurate, the item will remain unchanged. However, if the data furnisher doesn’t answer a verification request within the 30-day time frame specified by federal law, the item may be updated or removed. If the furnisher verifies the information later, it may be re-added to your credit history.

If you disagree with the outcome of a dispute, your options include:

• Reach out to the lender: Contact your lender or other data furnisher to seek correction of discrepancies in their records.
• Re-file a dispute with the credit bureau: Include additional evidence of the inaccuracy. Resubmitting only the information provided with your original dispute is unlikely to bring a different outcome.
• Add a statement of dispute to your credit report: This is a note that appears when anyone checks your credit, indicating that you disagree with an entry in your credit report.

The Bottom Line

Disputing inaccurate credit report information is everyone’s right. Exercising that option has no effect on credit scores, but changes made to your credit report because of disputes can impact your scores. Regularly check your free Experian credit report to ensure its accuracy, and if you spot any issues, the Experian Dispute Center is the quickest, easiest way to dispute information.

At O1ne Mortgage, we are committed to helping you achieve your financial goals. If you have any questions about your credit report or need assistance with mortgage services, don’t hesitate to call us at 213-732-3074. Our team of experts is here to guide you through the process and ensure you get the best possible outcome for your mortgage needs.