The Fair Credit Reporting Act (FCRA) provides two options for disputing inaccuracies: direct and indirect.
This occurs when a consumer contacts the source of the incorrect information directly, also known as the data furnisher. For example, if you see a late payment on your credit report from Bank of America but know that you paid on time, you can contact the bank directly to let them know about the mistake and ask them to correct the information with the credit reporting company.
Indirect disputing is when the consumer contacts the credit bureau to dispute information reported by a lender or other source. This is considered “indirect” because you are submitting your dispute to the credit bureau, which then contacts the data furnisher to investigate.
While some may argue that one method is better than the other, the truth is that the most effective method will depend on the specific error on your credit report and the supporting documentation you have available. By carefully reviewing your credit reports and gathering any necessary documentation, you can successfully dispute any inaccuracies and ensure that your credit report accurately reflects your credit history.