Finding out your loan or credit application was denied can be frustrating. But it’s even worse when the reason is a mistake on your credit report.
Maybe the report shows a loan you never took out. Maybe it lists a missed payment you know you made. Whatever the error, you have rights—and you don’t have to let the mistake stand.
Step 1: Read the Adverse Action Notice
If your application is denied, or if the lender offers you worse terms than expected, they are required by federal law to send you an adverse action notice. This notice will tell you:
The name, address, and phone number of the credit reporting agency (Equifax, Experian, or TransUnion) that supplied your credit report;
The credit score used in the decision and the key factors affecting it;
Your right to get a free copy of that credit report; and
How to dispute inaccurate information.
Step 2: Get the Credit Report Used in the Decision
Use the instructions in the notice to request your report directly from the credit reporting agency. You’re entitled to a free copy.
Step 3: Look for the Error
Carefully review the report to find what the lender saw. Common credit reporting mistakes include:
Accounts that don’t belong to you
Payments wrongly listed as late or unpaid
Outdated information that should’ve been removed
Mixed-up data from someone with a similar name or Social Security number
Step 4: Dispute the Error with the Credit Reporting Agency
To protect your rights under the Fair Credit Reporting Act (FCRA), you must send your dispute directly to the credit reporting agency (not just the creditor like Capital One or Wells Fargo).
We strongly recommend writing a dispute letter and sending it by mail, rather than using the online form. Include:
A clear explanation of what’s wrong
A copy of your credit report with the error highlighted
Any documents that support your claim (payment receipts, identity theft reports, etc.)
Step 5: Take Action If the Error Isn’t Fixed
If the credit reporting agency or creditor doesn’t correct the error—or performs a sloppy, automated investigation—you may need to take further steps.
You can send a second, more detailed dispute
Or you can talk to a lawyer who handles credit reporting cases
Don’t Let a Credit Report Mistake Cost You
We’ve seen clients denied mortgages, car loans, and even jobs because of false information on their credit reports. If this is happening to you, don’t wait. You have rights—you just have to use them.