How To Remove Inaccurate Items From Your Credit Report

Quick answer

• Review your credit reports from Equifax, Experian, and TransUnion for errors.
• Dispute any inaccuracies directly with the credit bureaus and the creditor.
• Provide clear evidence supporting your dispute.
• Keep detailed records of all communication and documentation.
• Be patient, as the dispute process can take time.
• Understand that legitimate debts cannot be removed by disputing them as inaccurate.

What to check first (before you act)

Credit report accuracy

Before you start the process of removing items, it’s crucial to ensure your credit reports are accurate. These reports are the foundation of your credit score, and errors can significantly impact your financial standing. Take the time to obtain your free credit reports from each of the three major bureaus: Equifax, Experian, and TransUnion. You can get these annually at AnnualCreditReport.com.

Utilization and balances

High credit utilization – the amount of credit you’re using compared to your total available credit – can negatively affect your score. Check the balances reported for your credit cards and other revolving credit accounts. If you see balances that are much higher than you expect, or if they are close to your credit limits, this is an area to address.

Payment history

Your payment history is the most significant factor in your credit score. Review your reports to confirm that all payments are accurately reported as on-time. Look for any late payments that you don’t recognize or that are older than the typical reporting period (usually seven years, with some exceptions for bankruptcy).

Recent inquiries

When you apply for new credit, lenders often perform a hard inquiry on your credit report. Too many recent inquiries can signal to lenders that you may be a higher risk. Check if there are any inquiries listed that you don’t recall authorizing.

Time horizon

Understand how long negative information typically stays on your credit report. Most negative items, like late payments or collections, remain for about seven years. More severe issues like bankruptcies can stay for up to ten years. Knowing this timeline helps set realistic expectations for when certain items will naturally fall off your report, even if they are accurate.

Step-by-step (credit improvement workflow)

1. Obtain your credit reports

• What to do: Request your free credit reports from Equifax, Experian, and TransUnion through AnnualCreditReport.com.
• What “good” looks like: You have three up-to-date credit reports in your possession, ready for review.
• Common mistake: Only checking one credit report.
• How to avoid it: Make sure to pull reports from all three major credit bureaus, as they may contain slightly different information.

2. Review each report thoroughly

• What to do: Go through each section of every report (personal information, account history, inquiries, public records) with a fine-tooth comb.
• What “good” looks like: You’ve identified all accounts, balances, payment statuses, and inquiries, and you’re confident about what’s listed.
• Common mistake: Skimming the report and missing small but significant errors.
• How to avoid it: Print out your reports or use a digital tool to highlight or make notes on anything that seems incorrect or unfamiliar.

3. Identify inaccuracies

• What to do: List out every piece of information that is incorrect, outdated, or you don’t recognize. This could include incorrect personal details, accounts you never opened, incorrect balances, or payments marked as late when they were on time.
• What “good” looks like: You have a clear, organized list of specific errors to dispute.
• Common mistake: Not being specific enough about what’s wrong.
• How to avoid it: For each item, note the exact discrepancy (e.g., “Account number XYZ belongs to me, but the reported balance of $5,000 is incorrect; my actual balance is $500”).

4. Gather supporting documentation

• What to do: Collect any evidence that proves the information on your report is inaccurate. This might include old bills, payment confirmations, court records, or letters from creditors.
• What “good” looks like: You have solid proof for each inaccuracy you plan to dispute.
• Common mistake: Not having sufficient proof to back up your claims.
• How to avoid it: If you’re disputing a late payment, find proof of your on-time payment. If you’re disputing an account you never opened, gather evidence that shows it’s not yours.

5. Dispute with the credit bureaus

• What to do: File a dispute with each credit bureau that lists the inaccurate information. You can do this online, by mail, or by phone.
• What “good” looks like: You’ve successfully submitted disputes for all identified inaccuracies to the relevant bureaus.
• Common mistake: Only disputing with the creditor and not the bureau.
• How to avoid it: Remember that credit bureaus are required to investigate your claims, so filing with them is a critical step.

6. Dispute with the creditor

• What to do: Simultaneously, or shortly after disputing with the bureaus, contact the creditor or lender that is reporting the information.
• What “good” looks like: You’ve initiated contact with the creditor and are working with them to correct the error.
• Common mistake: Assuming the creditor will automatically correct the error just because you disputed it with the bureau.
• How to avoid it: Provide the creditor with the same evidence you provided to the bureaus and keep records of your communication.

7. Track your disputes

• What to do: Keep a detailed log of all disputes filed, including dates, reference numbers, and copies of all correspondence and documentation sent.
• What “good” looks like: You have a complete paper trail of your dispute process.
• Common mistake: Losing track of communications and evidence.
• How to avoid it: Use a spreadsheet or a dedicated notebook to record every interaction.

8. Respond to bureau investigation outcomes

• What to do: The credit bureaus have a legal timeframe (typically 30 days, extendable to 45) to investigate your dispute. They will send you a response. If the item is removed, great. If not, review their findings and decide if further action is needed.
• What “good” looks like: You understand the outcome of the investigation and know your next steps.
• Common mistake: Giving up if the first dispute is unsuccessful.
• How to avoid it: If the bureau doesn’t remove the item and you believe it’s still inaccurate, you can submit additional evidence or consider escalating the dispute.

9. Monitor your credit reports

• What to do: After the investigation period, obtain updated credit reports to ensure the inaccurate items have been removed or corrected. Continue to monitor them regularly.
• What “good” looks like: Your credit reports reflect accurate information, and your score has potentially improved.
• Common mistake: Assuming the problem is solved after one round of disputes.
• How to avoid it: Check your reports periodically to catch any new errors or to confirm that corrections have been made.

What affects your score (plain language)

• Payment History: This is the biggest piece. Paying bills on time, every time, is crucial. Late payments can significantly hurt your score.
• Credit Utilization Ratio: This is the amount of credit you’re using versus your total available credit. Keeping this ratio low (ideally below 30%, but lower is better) is important.
• Length of Credit History: The longer you’ve had credit accounts open and in good standing, the better. It shows a track record of responsible borrowing.
• Credit Mix: Having a mix of different types of credit (like credit cards and installment loans) can be beneficial, but it’s not a primary factor.
• New Credit: Opening many new accounts in a short period can signal risk and temporarily lower your score due to hard inquiries.
• Public Records: Bankruptcies, tax liens, and judgments are serious negative marks that can drastically lower your score.
• Collection Accounts: If an account goes to collections, it’s a strong negative indicator.

What NOT to do while improving credit: Avoid closing old, unused credit cards if they have a good payment history, as this can reduce your overall available credit and increase your utilization ratio. Also, do not pay for services that promise to “remove” accurate negative information from your credit report; this is often a scam.

Common mistakes (and what happens if you ignore them)

| Mistake | What it causes