credit dispute
A formal challenge submitted to a credit bureau requesting investigation and correction of inaccurate information.
Example
“Her credit dispute over the fraudulent account was resolved in 30 days and the account removed.”
Memory Tip
DISPUTE — you have the legal right to challenge anything inaccurate on your credit report.
Why It Matters
Credit disputes directly impact your credit score and borrowing ability, as inaccurate negative items can unfairly lower your score and result in higher interest rates or loan denials. Taking action to dispute errors is one of the few ways consumers can actively improve their credit profile without waiting for time to pass.
Common Misconception
Many people believe that disputing an item removes it from their credit report permanently, but disputes only trigger an investigation and correction if the information is found to be inaccurate. If the information is verified as accurate, it remains on your report even after a dispute is filed.
In Practice
If you notice a credit card account showing a 120-day late payment from 2022 that you actually paid on time, you can submit a credit dispute to the bureau requesting investigation. The bureau then contacts the creditor to verify the information, and if the creditor cannot prove the late payment occurred, that negative mark gets removed from your report.
Etymology
From Latin 'disputare' meaning to examine — challenging the accuracy of credit information.
Common Misspellings
Check your credit score free — no impact
Related Terms
More in credit
Other credit terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.