Understanding Credit Reports: Disputing Errors Made Easy

This podcast provides essential information on protecting your credit report from errors.  Regularly reviewing and timely disputing errors are critical steps you must take to maintain your credit score; otherwise, you could face rejection when applying for a mortgage, car loan, or credit card.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Updated on November 18, 2025.

Listen: The Professor’s Audio Briefing.

Check Your Credit Report Regularly for Errors

Studies have consistently shown the presence of errors on consumer credit reports, many of which can negatively impact a credit score.

• Access Your Free Credit Report: By federal law, every consumer is entitled to one free credit report every 12 months from each of the three major credit bureaus: Equifax, Experian, and TransUnion.
• Official Source: The only official, federally authorized source for your free credit reports is annualcreditreport.com.
• Access Issues: Verifying your identity online requires answering security questions. If you are unable to do so, you can still proceed by doing so via regular mail, although the process will take longer.

Recent Changes to Credit Reporting Regarding Medical Debt

Credit reporting standards are subject to change. A significant recent update concerns medical debts:

As of 2023, paid medical collection debt is no longer reported, and medical collection debt under $500 is typically excluded from credit reports. This change is subject to ongoing regulatory action, including potential changes directed by bodies such as the Consumer Financial Protection Bureau (CFPB).

Professor’s Note: Update to Medical Bills: Federal Preemption Argument

Rules about how medical debt appears on credit reports are currently in dispute. Many states have passed laws to protect consumers by limiting or removing medical debt from credit reports. However, the Consumer Financial Protection Bureau (CFPB), under the Trump Administration, recently said that the federal Fair Credit Reporting Act (FCRA) overrides these state laws.

Their reasoning is that Congress wanted one national standard for credit reporting, and having different rules in each state could harm the credit system. This new stance goes against earlier guidance from the Biden Administration.

Dispute Errors on Your Credit Report Immediately

Mistakes on a credit report, such as incorrect balances, obsolete information, or listings that are not yours (e.g., identity theft or mixed files), can severely affect your ability to secure favorable interest rates on loans.

The Impact of Errors

• Loan Denial: Errors may lead to an application for a loan or line of credit being denied.
• Increased Interest Rates: Lenders who view inaccurate negative information may offer higher interest rates (e.g., 7% instead of 6%) or require significantly higher deposits.
• Delays: Fixing errors can take time. Checking your report in advance of any major purchase, such as a car or home, is crucial to ensure your credit history is clean when you apply.

If you need free sample letters to dispute errors on your credit report, please see this prior post that explains the process and where you can use my letters as a template.

The Dispute Process

• Online Dispute: Once you access your credit report online, the credit bureaus provide a simple, direct option to dispute specific errors listed on the report. It is fairly quick and can probably be done in ten minutes or less.
• Necessary Checks: Focus on verifying the accuracy of all reported debts, account statuses, and any judgments or bankruptcies listed. Identity theft is a common cause of errors, sometimes even listing foreclosures in a state where you have never owned property. I once had a car loan denied because of four foreclosures in the Florida Keys. I have never owned property in the Keys (Monroe County).

Take Advantage of Credit and Identity Monitoring

Regularly reviewing your report, at least annually, is the bare minimum. I also recommend that you continuously monitor your credit report to prevent identity theft and fraud.

• Fraud Alerts: Setting up credit alerts ensures you are notified instantly if a new credit application is made in your name.
• Transaction Monitoring: Setting low-threshold alerts for credit card activity such as a minimum charge of $5, allows for immediate detection and stopping of fraudulent transactions, preventing significant financial complications down the line.
• Data Breach Awareness: Stay informed about large-scale data breaches, as these often compromise personal information such as emails, phone numbers, Social and Security numbers, increasing the risk of identity theft.
• Freeze Your Credit: One of the strongest protections against identity theft is a credit freeze (or security freeze), which is free under federal law. When activated with all three credit bureaus, the freeze prevents access to your credit reports, which prevents opening a new line of credit, whether a fraudulent loan or credit card. If you are applying for credit, you can temporarily “thaw” the credit freeze when you need to apply for new credit yourself. The process is done within minutes.

Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link.

You can learn more about filing for bankruptcy and the bankruptcy petition via this link. Information on the bankruptcy court system, contact information for trustees, and your state’s exemptions can be found here. The federal bankruptcy exemptions are listed here. The latest version of the 341 Meeting of the Creditors can be found here.

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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.

Updated initially on May 2, 2025.