Lesson P102.2 · Personal Finance 102: Credit, Debt and Setbacks
Fix mistakes on your credit report for free
4-minute read · Figures checked October 2026
Photo: Cytonn Photography / Pexels, Pexels License
The short answer
You can fix errors on your credit report yourself, and it costs nothing. Dispute the mistake with each credit bureau that shows it and with the business that reported it, say what's wrong and why, and send copies of your proof. The bureau generally has 30 days to investigate. A credit repair company can't legally do anything you can't do yourself, and the law bars it from charging you before it does the work.
What mistakes look like
Read your reports from P102.1 line by line. Errors look like this:
- An account you never opened.
- A late payment on a bill you paid on time.
- A debt you paid off that still shows a balance.
- The same debt listed twice with a balance, once by the original company and once by a collector.
- The wrong name, address or Social Security number.
- Old items that should have dropped off. Most negative information can stay seven years, and bankruptcy can stay 10.
Medical bills have their own rules. A federal court threw out the Consumer Financial Protection Bureau's (CFPB's) medical-debt reporting rule in 2025. The three bureaus' own policies still leave off paid medical collections and unpaid ones under $500, and they wait a year before an unpaid medical collection shows up. If you see one of those, dispute it.
How to dispute, step by step
Send the dispute to two places:
| Send it to | How | What happens next |
|---|---|---|
| Each bureau that shows the error | Online, by phone or by mail | Generally 30 days to investigate, then 5 business days to tell you the results |
| The business that reported it | In writing, by certified mail so you have proof | Generally 30 days to investigate and respond |
Whichever way you send it, include your name, address and phone number, the account number, what's wrong and why, and what you want: the item fixed or removed. Add a copy of the report page with the item circled, and copies of your proof. Keep the originals. Some disputes get up to 45 days, such as when you send new information partway through or dispute after a free annual report.
Example: Lena finds a $1,200 collection for a phone account she paid off and closed two years ago. She has the final bill showing $0. She disputes online with the two bureaus that show it and uploads a copy of that bill. She mails the collector a letter with another copy, by certified mail. Then she sets a phone reminder for 45 days out.
Credit repair companies: what the law says
Credit repair companies charge to handle things like disputes for you. The law puts limits on them. They can't lie about what they can do, and they can't charge you before they help you. They have to give you a written contract that explains your rights, including three days to cancel at no charge.
Two facts to know before you pay anyone. Anything a credit repair company can legally do, you can do yourself for little or no cost. And no one can legally remove information from your report if it's both accurate and current. Wrong items can come off. True ones stay until they age off.
Your Move
Do this week
- Get out the reports from P102.1, or pull them free at AnnualCreditReport.com.
- Go line by line. If there are no errors, write "Checked, no errors" and the date on each report. You're done.
- If you find an error, gather proof: a statement, receipt, payoff letter or final bill. Make copies.
- Dispute it with each bureau that shows it, and in writing with the business that reported it.
- Set a reminder for 45 days out to check the results.
Log it: Disputed an error or confirmed none.
Common questions
Does it cost anything to dispute a credit report error?
No. Disputing mistakes or outdated items is free.
How long does a dispute take?
The bureau generally has 30 days from the day it gets your dispute, or up to 45 in some cases. It then has five business days to tell you the results.
What if the bureau says the item is correct?
Send any new proof and dispute in writing with the business that reported it. You can also ask the bureau to add your statement about the dispute to your file, and complain to the CFPB if you think the investigation got it wrong.
Watch out for
- Anyone who wants money before they've done any work on your credit.
- Anyone who tells you to file a false identity theft report.
- Promises to remove late payments or collections that are accurate and current.
- Promises of a "new credit identity," including getting an Employer Identification Number (EIN) to use in place of your Social Security number. That's a scam.
Free help
- AnnualCreditReport.com, or call 1-877-322-8228
- CFPB: How do I dispute an error on my credit report?
- CFPB: Submit a complaint
- Federal Trade Commission (FTC): IdentityTheft.gov, if an account isn't yours
Free practice
Lesson check
5 questions on this lesson, one at a time, with the answer and the reason after each. Pass with 4 right, including every must-know question.
This is general education, not tax, legal, investment or insurance advice. Rules change and every situation is different. Check the sources below, and talk to a qualified professional before you act on it.
Sources
- Federal Trade Commission: Fixing Your Credit FAQs
- Consumer Financial Protection Bureau: How do I dispute an error on my credit report?
- Consumer Financial Protection Bureau: How long does it take to repair an error on a credit report?
- Equifax: What have the Nationwide Credit Reporting Agencies (NCRAs) changed with respect to medical collection debt on consumer credit files?
- Federal Trade Commission: Free Credit Reports
- Consumer Financial Protection Bureau: Submit a complaint
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