Should I dispute a creditor on my credit report if I don’t recognize the company?
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If you don’t recognize a creditor, you should contact the company to learn more. The unfamiliar creditor may be legitimate.
Creditors and lenders may sell your accounts or use a third-party collection company to collect on an outstanding debt. As a result, it may show up as an unfamiliar name on your credit report. Also, if you have a retail store credit card, it is quite common for such cards to be listed on your credit report under the name of the bank issuing the card, not the retailer.
In addition, if the unfamiliar creditor is listed only as making an inquiry, it may indicate you’re being prescreened for credit opportunities. The Fair Credit Reporting Act permits prospective creditors or insurers to have the credit reporting company search your credit file to see if you meet criteria set by the creditor – a process called prescreening – in order to make you a firm offer of credit or insurance. If you don’t want to receive these offers, you can opt out of prescreening.
However, if you believe the information is incorrect, you should dispute it. Learn how to dispute an error on your credit report.