Does disputing a debt hurt your credit? Here's what borrowers should know.

The debt dispute process can impact how an account appears on your credit, but the effect isn't always what you'd expect. BangWan/Abu Hanifah/Getty Images

When you see a debt pop up on your credit report that doesn't look familiar, or one that lists the wrong balance or dates, it's natural to panic. Errors on credit reports are more common than many borrowers realize, especially with lenders and debt collectors managing high volumes of accounts in today's still-elevated borrowing environment. And, considering that your credit score influences everything from loan approvals to interest rates, it makes sense to scrutinize every line of your report.

At the same time, Americans are carrying heavier debt loads than they were just a few years ago, and delinquencies have been ri