Sue a creditor for defamation.

If a creditor staying in a different state blemishes my credit report with information that I believe to be inaccurate, can I make a claim in my local Small Claims court and if I win as the creditor is out of state and did not bother to appear at court, will the inaccurate report be removed from my report? Can I sue the creditor as the false report negatively affects my reputation?
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