It is already hard enough to maintain a good credit score, without the issues of misinformation constantly showing up on our credit reports. Moreover, identity theft can destroy our credit profile and create huge problems down the road.
Thus, it’s extremely important to look closely at your credit report long before, you apply for a big loan such as a mortgage or an auto lease.
If you don’t look carefully, you could find yourself stuck with an extremely high interest rate or something even worse, all because of an erroneous item showing up on your credit report that shouldn’t really be there.
Disputing Inaccurate Items
It is very common to see inaccurate items appear on a credit report, but the good thing is that if they do appear, disputing them isn’t that difficult. There are two methods for tackling errors that you want removed from your credit report.
Write a Letter to the Credit Bureau
The first thing you can do is to write a dispute letter to the credit bureau(s), explaining that the item in question should be removed. Remember to include copies of any relevant documentation and a copy of the credit report itself highlighting the mistake.
Include All The Details
The letter should include your full name, address, a complete description of the error, and a short explanation as to why you are disputing the item in question. The letter should be sent by certified mail and make sure you ask for “return receipt requested” to document the process.
The credit bureau will then require 30 days to review the information, send it to the associated creditor, and complete the investigation. After the investigation is complete, the credit bureau should send you the results in writing, along with a free copy of your report.
In case an item on your credit report is changed or removed, the credit bureau cannot put the disputed information back on your credit report unless the creditor verifies that it is accurate.
Thus basically, the creditor has to prove you wrong in order to retain the incorrect information, which in many cases they fail to do. This is either because they are reporting misinformation, or simply because they fail to pursue your case.
Dispute an Item Online with the Credit Bureaus
Disputing online is much more easier than writing a letter. If you sign up for a so-called, free credit report, you’ll be able to dispute any item that you feel is incorrect. There is a “dispute this item” button on the website, which allows you to report incorrect information. Most of the credit report/credit monitoring services have this feature.
It’s an easier and more efficient way to dispute negative items quickly, without the hassle of sending letters. And the best part is that it’s done online.
But the credit bureaus will still require 30 days, and if your dispute is successful, your credit report and credit score will be updated.
It is possible that your credit score may be affected tremendously, often resulting in a 50 point swing or possibly even more, because of one simple dispute.
Credit Disputing Websites
Here are the credit bureaus dispute sites. Select the correct bureau by identifying which is reporting the error.
www.equifax.com/online-credit-dispute
www.experian.com/disputes/index.html
www.transunion.com/corporate/personal/creditDisputes.page
