Introduction — Why alternative data matters now
Credit files increasingly include non‑traditional entries: consumer‑permissioned bank cashflow, rent payment feeds, and (increasingly) buy‑now‑pay‑later (BNPL) loan records. Lenders and new scoring products are adopting these signals to expand coverage for thin‑file borrowers — but the systems and reporting channels are new, uneven, and sometimes inaccurate. These changes make it essential to know how to read those lines, verify the source, and send a precise dispute when something is wrong.
This article walks through the common types of alternative‑data entries you’ll see, how they are created, practical red flags to watch for, and a step‑by‑step dispute letter checklist that increases your chance of a fast correction.
How to read alternative‑data lines: bank cashflow, rent, and BNPL
Bank cashflow and income feeds
What it looks like: some consumer‑permissioned products and bureau‑partners now ingest bank account data (income deposits, recurring debits, card payments, balances) and surface attributes such as “verified income,” average monthly inflows, or cashflow‑based risk scores. These feeds are often provided with short descriptions (e.g., “bank‑verified deposit: $2,300 on 2025‑01‑10”). When a bureaus’ new cashflow products appear on your file, they’ll typically show as a vendor name or attribute entry rather than a traditional tradeline.
- Red flags: mismatched account numbers, inflows that don’t match your pay dates, duplicated months, or an unexplained vendor name.
- Where to verify: check the report for the furnisher name (the vendor that supplied the data) and compare with statements from your bank or any fintech app you authorized.
Rent reporting
What it looks like: rent payments reported through dedicated rent bureaus or tenant‑screening services often appear as a “rent payment” tradeline (positive or “past due” entries) or as a tenant‑screening record. Some rent reporters submit only to one bureau (commonly Experian’s RentBureau) while others push to multiple bureaus — that determines where the boost or hit appears.
- Red flags: late marks after on‑time payments, eviction or rental debt entries that should be COVID‑protected or paid, or vendor names you don’t recognize.
- Context: recent litigation and regulatory attention around rental‑market algorithms and data sharing has changed what landlords and vendors supply and how sometimes‑sensitive rental data is shared; legal actions and settlements have affected vendor practices. If a vendor disappears or changes reporting after a settlement, that can explain missing or altered rent history.
BNPL entries
What it looks like: BNPL loans may be reported as short‑term installment tradelines (when the BNPL provider chooses to report), as a balance on a consumer account, or — in some cases — not reported at all. Reporting policies vary by provider and over time; industry changes mean a growing number of BNPL transactions will be visible to lenders and scoring models.
- Red flags: missing payments that a provider shows as paid, multiple small BNPL tradelines that don’t match your purchase history, or a BNPL vendor listed under a different legal name.
- Tip: identify the furnisher (the company that told the bureau about the BNPL account). If the provider has only partial or selective reporting, your dispute should demand the furnisher show the source documentation it used to verify the line.
How to dispute alternative‑data entries: step‑by‑step & a sample letter
Legal framework and timelines: under the FCRA you may dispute inaccurate or incomplete information with the credit reporting company and with the furnishing company. CRAs generally have 30 days (45 days in certain cases) to investigate; furnishers must investigate and correct errors when notified. If you don’t get a satisfactory result, you can file a complaint with the CFPB.
Evidence to gather before you write
- Bank statements or screenshots showing the exact transaction dates and amounts.
- Lease, cancelled checks, rent receipts, or landlord payment‑portal records for rent disputes.
- BNPL order confirmations, emails, and provider account history for BNPL disputes.
- Authorization receipts, screenshots of fintech app permissions, and proof of identity (to show the entry applies to you, not someone else).
What to include in a dispute letter (checklist)
- Full name, address, and daytime phone/email.
- Credit report reference: bureau name and report date (or a screenshot with the disputed line circled).
- Specific description of the item(s) disputed: vendor name, account/transaction ID, date(s), and the exact error.
- Why it’s wrong and what correction you want (delete, correct date, change amount, mark as paid, etc.).
- Attach clear supporting documents (copies — never originals) and label them (e.g., “Exhibit A: bank statement page showing deposit on 2025‑01‑10”).
- Ask for results in writing and request that the furnisher notify all bureaus it reported to if the error is corrected.
Sample short dispute paragraph (paste into your letter)
"I dispute the enclosed item(s) because [one‑sentence reason]. The entry (furnisher: NAME; account/transaction ID: ####; reported date: YYYY‑MM‑DD) is inaccurate because [brief fact]. Please correct or remove this entry and send written confirmation of the results."
Follow both routes: send the dispute to the credit reporting company (online portal or certified mail) and to the furnisher (certified mail). Keep delivery receipts and copies. If the CRA or furnisher claims the information was verified, request copies of the documentation they relied on (this is crucial for alternative data because vendors often rely on API feeds or third‑party aggregators).
Escalation if the bureau or furnisher doesn’t fix it
- Request a statement of dispute to be placed in your file if the result is unfavorable.
- File a complaint with the CFPB (provide copies of your dispute, the response, and supporting documents).
- Consider contacting an attorney if a furnisher repeatedly supplies demonstrably false information — furnishers have duties under the FCRA to investigate disputes properly.
Practical examples and red‑flag language to add
When disputing a bank‑cashflow attribute: "The cashflow entry lists monthly inflows of $X that do not appear on my bank statement for [month]. Enclosed: bank statement pages and a screenshot of my payroll deposit history."
When disputing rent: "My landlord's vendor shows a '30‑day late' mark for April 2025 but my bank shows a rent payment on April 3, 2025. Enclosed: bank statement and landlord receipt."
When disputing BNPL: "The BNPL tradeline shows missed payments for order #ABC but my BNPL account history (enclosed) shows 'paid in full' on YYYY‑MM‑DD. Please verify source transaction logs and remove the late mark."
Make your letter short, factual and document‑heavy: the bureaus and furnishers will forward your attachments to whoever provided the entry, increasing the chance of a prompt, verifiable fix.
Bottom line and next steps
Alternative data can help or hurt: bank cashflow and rent feeds expand visibility for thin‑file consumers, and BNPL reporting is becoming more material to scoring models — but the newness of these feeds means misreports are common and can be subtle. Verify the furnisher, gather the primary documents that disprove the entry, file parallel disputes with both the bureau and the furnisher, and keep careful records. If you hit a wall, file a CFPB complaint and consider legal help for repeated furnishers' failures.
Need a tailored dispute letter or a review of the specific items on your report? CreditLess.com members can send a redacted page of their report to our dispute‑template pack for a customized draft. (See related templates: "Dispute Template Pack for AI and Alternative‑Data Errors" on CreditLess.)