What to Do If You’re Denied a Loan Due to an Incorrect Credit Report

You’ve done the work—saved up, planned ahead, and applied for that loan. Then the bad news hits: your application was denied because of inaccurate information on your credit report.

Maybe it’s a credit account you never opened, a wrongly reported late payment, or someone else’s personal information mixed into your file. Whatever it is, it doesn’t belong there—and it’s affecting your credit score.

Credit report errors are more common than most people think. One in five Americans has a mistake in their credit file. But here’s what matters: you have the right to dispute inaccurate or incomplete information, and with the right steps, you can correct your credit report and get back on track.

Why These Credit Report Errors Actually Matter

We talk to clients all the time who feel blindsided by a loan denial, only to find out later there’s something wrong buried in their credit report. It’s not just annoying. It’s expensive, stressful, and in a lot of cases, completely avoidable if the information in your credit file had been accurate in the first place.

A few numbers off. A late payment that wasn’t late. An account you’ve never seen in your life. That’s all it takes.

And here’s the part most people don’t realize until it’s too late: even one error like that can knock your credit score down by 50, maybe even 100 points. That’s enough to go from “you’re approved” to “you’re not eligible”—and nobody tells you until the damage is already done.

We’ve seen these errors cause:

• Credit card and loan applications to get denied—sometimes with no warning
• Interest rates that are way higher than what you actually deserve
• Missed chances at getting approved for an apartment or even a job
• Insurance premiums that spike for no good reason

These aren’t just numbers on a page—they affect your real life. And when the information in your credit report is inaccurate or incomplete, it’s your right to step in and fix it.

Step 1: Start by Pulling Your Free Credit Reports

If you’ve just been denied a loan, the first thing we need to do is figure out exactly what the lender saw. That means pulling your credit report—not just one, but all three. The major credit bureaus—Experian, Equifax, and TransUnion—each maintain their own file on you, and they don’t always match.

Under federal law, you’re entitled to a free credit report from each bureau once a year through AnnualCreditReport.com. But here’s something a lot of people don’t know: if you’re denied credit because of something in your credit report, you can also request a free copy of the exact report the lender used. You just have to ask.

Once you have all three in hand, slow down and take your time. You’re looking for anything that’s inaccurate, outdated, or flat-out wrong. That might include:

• Accounts you never opened
• Payments marked late when you know they weren’t
• Incorrect personal information—like your name, address, or Social Security number
• Credit inquiries you don’t recognize
• Balances that don’t match what your statements show
• Negative items that should have dropped off by now

Cross-check what’s in your credit file against your own records. Highlight anything that doesn’t line up. This is your foundation—the stronger you build it, the better we can move forward.

Step 2: Gather the Proof Before You File Your Dispute

Once you’ve spotted something off in your credit report, don’t rush to hit “submit” on a dispute just yet. We always tell people: slow down and build your case first. The credit bureaus won’t fix errors just because you say something’s wrong—you’ve got to show them.

That means tracking down the paperwork that proves what should (or shouldn’t) be in your credit file.

Depending on the mistake, that proof might look like:

• A payment confirmation showing you paid a bill on time
• A statement from the creditor correcting their own error
• Discharge papers from a court if a debt was legally wiped out
• Identity theft documentation, if someone else opened that account
• Account summaries with the right balance or credit limit

Print copies of everything. You’ll send those with your dispute, but keep the originals somewhere safe, just in case anything goes sideways later. If you’re dealing with more than one bureau, label each packet clearly so there’s no confusion about which documents go where.

Step 3: Send In Your Dispute—The Right Way

Once you’ve spotted the errors and pulled together your proof, it’s time to actually file the dispute. But here’s the thing—how you do it matters just as much as what you’re disputing.

Each credit bureau that’s reporting incorrect information—whether it’s Experian, Equifax, or TransUnion—needs to hear from you directly. And yes, that means if the same error shows up on all three, you’ll need to file a separate dispute with each one.

You’ve got a few ways to do it:

• Online, through each bureau’s dispute center
• By mail, using a written dispute letter (still the most reliable method)
• By phone—but honestly, that route’s hard to document, and we don’t recommend it

When you send your dispute—especially by mail—make it clear and specific:

• Point out each item in your credit report that you believe is inaccurate or incomplete
• Explain why it’s wrong and what the correct info should be
• Ask the bureau to either correct it or remove it entirely
• Include copies of any documents that back you up (keep the originals for yourself)

And here’s a tip: track everything. Dates, times, who you spoke to, what they said. If you’re mailing the dispute, use certified mail with return receipt. Paper trails matter.

Need help drafting the letter? The Consumer Financial Protection Bureau (CFPB) has sample letters on their site you can borrow from—just be sure to personalize yours so it fits your situation.

This isn’t just a formality. A well-documented, clearly written dispute forces the credit bureau to investigate—and often, it’s what finally gets that bad information off your credit file.

Step 4: Go Straight to the Source

Filing a dispute with the credit bureaus is a critical move—but it’s not the only one. If the error came from a creditor, lender, or another information provider, you’ll want to go straight to them, too.

Let’s say your credit report shows a late payment, but you’ve got the receipts to prove you paid on time. Don’t just wait on the credit bureau to handle it—send a letter to the company that reported the bad info in the first place.

Here’s what that letter should include:

• The exact item you’re disputing
• A short explanation of why the information is inaccurate
• A clear request for them to fix the error with every credit bureau they report to

And yes, you’ll want to attach the same supporting documentation you already sent to the bureaus. Make sure everything is organized and easy to follow.

Under the Fair Credit Reporting Act, if a company shares data with one bureau, they’re required to correct that error across the board. But that only happens if you push for it—and in writing.

It’s one more layer of accountability. And in our experience, it often speeds things up.

Step 5: Don’t Let the Investigation End Without You

Once your dispute is in, the credit bureau is on the clock. By law, they have to investigate within 30 days—sometimes 45, depending on the situation—and they’re supposed to pass along everything you sent to the company that originally reported the data.

If that company admits the info was wrong—or can’t prove it’s right—the bureau has to fix it. That means removing or correcting the error in your credit report, plain and simple.

But here’s the part a lot of people miss: you still have to follow up.

After the bureau wraps up the investigation, you’ll get the results in writing. When you do:

• Go over the outcome carefully—don’t skim it
• Pull a fresh copy of your credit report to make sure the change actually shows up
• If you’re not satisfied with the results, don’t stop there

You’ve got a few options if the bureau doesn’t get it right the first time:

• Submit a new dispute with extra documentation or clearer explanation
• Add a short statement (up to 100 words) to your credit file, telling your side of the story
• File a complaint with the Consumer Financial Protection Bureau (CFPB) to apply a little outside pressure

Some disputes get resolved quickly. Others take persistence. Either way, don’t let one bad result stop you from fighting for a clean, accurate credit file. This is your financial reputation—and you’ve got every right to protect it.

Step 6: Go Back to the Lender and Ask Them to Reconsider

Once the dust settles and those errors are finally off your credit report, don’t just move on and assume it’s over. You’ve fixed the mistake—that means it’s completely fair to ask the lender to take another look.

Reach out. Call or write—whatever feels more natural—but don’t leave it hanging. Let the lender know you’ve cleared up the mistake on your report and that the decision they made was based on information that wasn’t accurate.

Here’s what we usually tell people to send:

• A copy of the dispute results, so they can see the outcome
• Your updated credit report, showing that the problem’s been resolved
• Any other paperwork that helps back up your position
• A short letter that explains the situation and asks for reconsideration

Some lenders won’t budge—but many will, especially when they realize the denial was based on something that shouldn’t have been there in the first place. Don’t wait around hoping they’ll call you. Make the first move.

You’ve already done the hard part. This is just about closing the loop.

Step 7: If You’re Still Hitting a Wall, Get Help

Sometimes, no matter how careful you are—no matter how solid your paperwork is—those credit report errors just don’t budge. If you’ve followed the steps, filed the disputes, sent the documents, and the problem still isn’t fixed, it might be time to bring in someone who does this for a living.

That’s especially true if you’re dealing with something messy, like identity theft, accounts that clearly aren’t yours, or mixed files (when someone else’s credit data ends up in your report). Those situations can spiral fast—and fixing them on your own can feel like hitting a brick wall over and over.

At that point, talk to a lawyer who handles consumer protection law. If your rights under the Fair Credit Reporting Act have been violated, an experienced attorney can step in, put pressure where it counts, and help you set the record straight.

In some cases, you might even be entitled to compensation for the damage caused by the inaccurate reporting.

Keeping Your Credit Clean Moving Forward

Once you’ve been through the hassle of fixing credit report errors—especially if it cost you a loan approval—you start to realize how important it is to stay ahead of the problem. The best way to do that? Put a simple credit monitoring routine in place.

Here’s what we usually recommend:

• Check your credit report from each of the three nationwide credit bureaus at least once a year
• Instead of pulling all three at once, spread them out—grab one every four months so you’re checking in regularly
• Look for anything new that doesn’t belong, or problems that keep showing up
• If something’s wrong, dispute it right away—don’t wait until the next loan application
• If you want an extra layer of protection, think about using a credit monitoring service that sends you alerts when changes pop up

One more thing: yes, negative information—even when it’s accurate—sticks around for a while. Most items stay on your report for seven years (or ten if it’s a bankruptcy). But here’s the good news: the older it gets, the less it drags down your credit score.

How We Help Mississippians Fix Credit Report Errors

At Ware Law Firm, we work with people across Mississippi who’ve had loans denied for reasons that didn’t add up—until they looked at their credit report and found the problem. And once you’ve been hit by one of these errors, you know just how much damage it can do—not just to your finances, but to your plans, your timeline, and your peace of mind.

Our consumer protection attorneys know how to push back when the system doesn’t do what it’s supposed to. We help clients take back controlDenied a loan over a credit report error? Learn how to dispute and correct it. by:

• Reviewing credit files line by line to spot every potential error
• Pulling together dispute documentation that’s clear, thorough, and hard to ignore
• Making sure credit bureaus follow the rules when handling investigations
• Taking legal action when bureaus or furnishers violate the law
• Pursuing compensation for financial harm caused by inaccurate reporting

The Fair Credit Reporting Act gives you more than just the right to file a dispute—it gives you the right to accurate reporting. And when the system breaks down, we’re here to make sure that right is enforced.

Your Next Step Starts Here

If you’ve been turned down for a loan because of information in your credit report that you know is inaccurate or incomplete, don’t wait it out hoping it’ll resolve on its own. It usually doesn’t.

Let us take a look. Even a quick review can tell us whether you’ve got a case—and if you do, we’ll walk you through every step. Fixing the problem now won’t just help with the loan you lost—it’ll protect your credit, your options, and your financial future.

Ready when you are.