How to Spot and Fix Errors on Your Credit Report

Summary

WSJ Your Money Briefing
Episode Title: How to Spot and Fix Errors on Your Credit Report
Date: October 4, 2021
Host: J.R. Whalen (B)
Guest: Cheryl Winokur Monk (C), WSJ Contributor

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Episode Overview

This episode of "Your Money Briefing" explores the importance of monitoring your credit report for errors and equips listeners with practical steps to identify and correct mistakes. Host J.R. Whalen talks with WSJ contributor Cheryl Winokur Monk, who shares expert guidance on why credit report errors happen, how to fix them, and where to turn for help if the process feels overwhelming.

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Key Discussion Points and Insights

1. Why Check Your Credit Report Regularly?

• Even careful financial behavior can be undermined by errors on your credit report. These mistakes may impact your ability to secure a mortgage, car loan, or even rent an apartment.
• Quote:
  "Mistakes on your credit report can undo your due diligence and do damage to your personal finances."
  — J.R. Whalen [00:44]

2. Common Warning Signs and Causes of Credit Report Errors

• How might you spot an error?
  • Often, you won’t know there’s an error until you’re denied for a loan or see a surprising credit score.
  • Regularly reviewing your report is crucial; with pandemic-era policies, you can check weekly until April 2022.
• Types of errors:
  • Simple typos (“fat finger” mistakes) such as transposed payment amounts.
  • Incorrect personal information (misspelled names, wrong phone numbers).
  • Mixed files—credit details blended with someone with a similar name or Social Security number.
• Quote:
  "Sometimes people’s credit profiles even get mixed up, which are much bigger errors...that can be a real, real headache to fix."
  — Cheryl Winokur Monk [03:17]

3. How to Fix Credit Report Errors

• Do it yourself first:
  Request your report from all three bureaus: Equifax, Experian, and TransUnion.
• Step-by-step process:
  • Review each bureau’s report for discrepancies.
  • Follow the online or mail-in dispute procedures provided on each site.
  • Gather and submit supporting documentation.
  • Notify both the credit bureau and the “furnisher” (e.g., lender or credit card company) about the error.
• Quote:
  "You’re going to want to go to that furnisher...whoever is furnishing or giving that wrong information is the company you’re going to want to go to to tell them that information is incorrect.”
  — Cheryl Winokur Monk [04:51]

4. Timeline for Dispute Resolution

• Credit bureaus usually have 30 days to investigate a dispute (sometimes up to 45 days).
• If the issue isn’t resolved, you can continue to press your case.
• Quote:
  “So it's not like it's going to be hanging over you forever.”
  — Cheryl Winokur Monk [05:18]

5. Impact of Credit Report Errors

• Errors can:
  • Make borrowing more expensive or difficult.
  • Affect eligibility for renting housing.
  • Generally make financial transactions more challenging and costly.
• Quote:
  "It could really make things either a lot more expensive or a lot more difficult to either get a loan or get an apartment or any of those things."
  — Cheryl Winokur Monk [06:03]

6. Responsibility for Finding and Reporting Errors

• The onus is on consumers to check and initiate corrections—even when the mistake isn’t the consumer’s fault.
• Quote:
  "Even if someone else is causing the error, you’re the one who’s going to feel the damages and should make sure that any errors are fixed."
  — Cheryl Winokur Monk [06:18]

7. When to Seek Professional Help

• Consider contacting the National Association of Consumer Advocates for attorney referrals.
• Credit repair firms are another option, but vigilance is necessary:
  • Never pay in advance.
  • Get a written contract with all required disclosures.
  • The firm must inform you of your right to cancel in writing.
• Quote:
  "You have to be really careful that you're working with a legitimate firm.”
  — Cheryl Winokur Monk [06:38]

8. Don’t Dispute Accurate Negative Information

• The dispute process is strictly for fixing errors, not for erasing legitimate but unfavorable history.
• Quote:
  "You can't fix what's correct on your credit report, even if you don't like it."
  — Cheryl Winokur Monk [07:23]

9. Legislative Efforts to Improve the Dispute Process

• Congress has considered making the credit report dispute system easier for consumers, with some bills introduced but not passed as of the episode date.
• Quote:
  “It's bigger than just fixing this problem. But if these changes do go through, then it could make it easier for consumers to fix credit mistakes."
  — Cheryl Winokur Monk [08:08]

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Notable Quotes & Memorable Moments

• On the impact of errors:
  "Sometimes people’s credit profiles even get mixed up, which are much bigger errors...and that can be a real, real headache to fix."
  — Cheryl Winokur Monk [03:17]

• On taking initiative:
  “It really does because it's your credit report and you're the one responsible for it.”
  — Cheryl Winokur Monk [06:14]

• On limitations of the fix:
  “You can't fix what's correct on your credit report, even if you don't like it. So that's not what this process is for.”
  — Cheryl Winokur Monk [07:23]

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Timestamps for Important Segments

• [00:54] — What a credit report is and why errors matter
• [02:23] — Signs you might have an error; the importance of checking your report
• [03:07] — How credit report mistakes happen; types of errors
• [03:44] — Step-by-step guidance to fix errors yourself
• [05:11] — How long the dispute process takes
• [05:39] — Financial risks and consequences of unresolved errors
• [06:07] — Consumer responsibility for identifying and correcting errors
• [06:34] — Options for professional help; avoiding scams
• [07:11] — Disputing only factual inaccuracies, not legitimate negatives
• [07:54] — Legislative attempts to streamline error correction

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Conclusion

This episode provides a practical, concise roadmap for protecting your financial reputation by staying vigilant about your credit report, understanding the process to resolve errors, recognizing when to seek help, and being cautious about quick fixes. Cheryl Winokur Monk’s advice underscores that the ultimate responsibility—and benefit—rests with the consumer willing to take charge.

Transcript

[A]

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[B]

Here's your money briefing for Monday, October 4th. I'm J.R. whalen for the Wall Street Journal. If you pay your bills and spend below your credit limit, you might not think you need to check your credit reports regularly. Turns out you should check it for errors. Mistakes on your credit report can undo your due diligence and do damage to your personal finances.

[C]

It can be harder to get a mortgage or get a good loan. A favorable loan on a car, for example. The other thing that when you're going to rent an apartment, sometimes landlords look at your credit.

[B]

So how would you know if there's an error on your credit report? And what steps can you take to rectify it before it's too late? WSJ contributor Cheryl Winokur Monk will be here with tips on how to dot your I's and cross your t's. That's after the break. Access to affordable credit helps me pay my employees, but I don't really need it. Infliction is killing me, but who cares? Big retailers are making record profits. That's why we support the Durbin Marshall credit card bill.

[A]

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[B]

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[C]

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[A]

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[C]

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[B]

A credit report paints a picture for banks and lenders of how reliable people are at paying off debts and whether they'd be a risk to take on more debt like a mortgage or a car. Which is why a simple error on your credit report can wind up telling a very different story and have a chilling effect on your ability to spend. WSJ contributor Sheryl Winoker Monk has been looking into how to spot errors and how to fix them. Hey Cheryl, thanks so much for being with us.

[C]

Great to be here. Thanks for having me.

[B]

So Cheryl, what typically is a tip off to a consumer that There is something out of sorts with their credit report.

[C]

Well, you may not know it unless you go to apply for a loan and someone says, well, you know your credit is X and you wonder Y. I mean, that's if something, there's an error that would affect that. But it may just be something innocent like you're checking your credit reports, which you really should do once a year. And now with the pandemic, the credit agencies have allowed you to do it once a week until April 2022. So it may be something where you're actually applying for some kind of a loan, where you run into a problem, or it just may be something you're thumbing through the Prof. File and are through your report just innocently, just checking to make sure there are no errors and you see something amiss.

[B]

But how do these mistakes happen and what do they look like on a credit report?

[C]

Well, oftentimes the lender will make an error and say that you made a payment. Let's say the payment was for $1,000. And then there's just the fat finger problem where it becomes $6,000. Or it can be a misspelling or a phone number is wrong. The errors really run the gamut. Sometimes they can be very small errors that really don't make a difference. And sometimes people, credit profiles even get mixed up, which are much bigger errors. Like you have a similar name or a similar Social Security number, and then you know you're mixed up with somebody else. And that can be a real, real headache to fix.

[B]

Okay, so let's talk about fixing these errors. Can people do this on their own and what's the first step they should take?

[C]

So it's really important to try to do this on your own first because a lot of mistakes can be fixed by the consumer. You're going to want to go to all three credit agencies and you can find them online. The three credit bureaus are Equif, Experian and TransUnion. And you're going to want to go to each of their websites, request your credit report. And then once you can look at those reports and see what the mistake is on each of their websites, there's a procedure that you have to follow to ask for the report to be fixed. You're going to need certain documentation when you do that. And you can do it. There's a couple ways you can do it. You can do it online, which is really the easiest thing because each website will walk you through how to make those fixes. But you can also do it by mail. Sending a letter. And you're also going to want to send a letter to the lender or the entity that is providing the incorrect information is called the furnisher in industry lingo. And so you're going to want to go to that furnisher, which may be a lender, for example, who has the wrong information. So it could be a credit card company, it could be a mortgage provider. Whoever is furnishing or giving that wrong information is the company you're going to want to go to to tell them that that information is incorrect. So you're going to do that at the same time you're telling the credit bureau that the information is incorrect.

[B]

How long does this process usually take?

[C]

When you file a dispute, the credit bureau has 30 days to investigate your complaint. It can be 45 in some circumstances, but most of the times it's 30 days. So that credit bureau will have 30 days to investigate your complaint. So it's not like it's going to be hanging over you forever. And then it does give you time to go back and say, no, this isn't right still, and to keep kind of going down that process.

[B]

So what are some of the effects that these errors can have on someone's finances? Is it usually a time sensitive issue?

[C]

It really is because it can be a big problem. It can be harder to get a mortgage or get a good loan, a favorable loan on a car, for example. The other thing is that when you're going to rent an apartment, sometimes landlords look at your credit to see the status of your credit. And if you're a good, if you're a good credit risk and if you have mistakes that can affect your credit, it could really make things either a lot more expensive or a lot more difficult to either get a loan or get an apartment or any of those things.

[B]

Does the responsibility to recognize and report these errors only lie with the consumer? Even if the mistake isn't the consumer's fault?

[C]

It really does because it's your credit report and you're the one responsible for it. So even if someone else is causing the error, you're the one who's going to feel the damages and should make sure that any errors are fixed.

[B]

Okay, so you mentioned that people can and should try to solve this on their own. But if someone feels they need an expert's assistance to sort things out, where should they turn?

[C]

So one possibility is visiting the national association of Consumer Advocates, right on their website. You can search for attorneys by state that deal with these kinds of issues. There are also Credit repair firms. These are going to cost a fee. And you have to be really careful that you're working with a legitimate firm. And you don't want anyone who engages in illegal or shady practices. So never pay in advance of services being received. For example, you have to get a written contract which is going to include certain details about the job that this company is going to perform. And you have to be told in writing that you have the right to cancel.

[B]

Now, of course, nobody wants blemishes or negative information on their credit report, but what if somebody tries to, quote, unquote, fix a blemish that's actually legitimate so

[C]

that you shouldn't do, because you can't fix what's correct on your credit report, even if you don't like it. So that's not what this process is for. You may have negative information on your credit report, but that may just be legitimate. The process for fixing your credit report is fixing an error on your credit report. If it's not wrong, you can't fix it.

[B]

Okay, Got it. And you know, Cheryl, for many consumers, there's a lot riding on fixing credit report errors, and it can be a cumbersome task. Have there been any efforts to try to streamline this process?

[C]

So Congress is trying. There are some efforts in the House. In 2020, two bills had passed in the House of Representatives to help make this process a little eas, but those bills didn't go anywhere. And just in June, the House Financial Services Committee held a hearing on overhauling the credit reporting system. It's bigger than just fixing this problem. But if these changes do go through, then it could make it easier for consumers to fix credit mistakes.

[B]

All right, that's Wall Street Journal contributor Cheryl Winokur. Monk. Cheryl, thanks so much for being with us on the show.

[C]

Thanks for having me.

[B]

And that's your Money briefing. I'm J.R. whalen for the Wall Street Journal.

[A]

This podcast is brought to you by relioQuest. Cybercriminals are constantly attacking. They want your data. They want your identity. They want your innovation. RelioQuest fortifies your business with agentic defense AI that detects, contains and eliminates cyber threats in minutes. It helps your security team move faster at the work that matters most to protect the business now and delivers insights to help them predict what's next. ReliaQuest agentic defense for the enterprise. Learn more at reliaquest.com that's R E L I A Q U E-S-T dot com.