Errors on your credit may cause your credit score to be lower than it should be. It may even be the reason you don't qualify for the car or home you really wanted. You should never allow an error on your credit to remain on the reports.
The biggest benefit to disputing items on your credit report is that you are taking the first step to credit repair. Your credit scores will improve when you repair all errors on your report. Did you know that you can raise your credit score a whole point by just updating your contact information? It is true. Credit is very important today and it is harder than ever for people to get a line of credit extended to them. Don't let errors stop you from having the financial freedom you should have. Always be sure that your name, address, and phone number are correct on your credit report.
Disputing items on your credit reports is important for many reasons. The first thing you need to do is get copies of all of your credit reports. This is because some things may be listed on one report that will not be listed on the others. Some credit reporting agencies say that you should dispute everything on your credit. This is because if you do owe a company from years ago and they don't exist anymore the items will be removed. Companies change hands all of the time also and many old debts are non-existent to other businesses. If you are sure you owe the money you should pay the debt.
When you dispute erroneous items on your credit you will see them disappear after about 120 days. When you write a letter of dispute to the crediting agencies disputing the claim the business has 30 days to prove you do or do not owe the money to them. If you do not owe the money the items will be removed from your scores in another 90 days. You cannot speed up the process of removing errors from your credit reports but they will be removed.
You can correct mistakes and errors on your credit reports. It may seem time consuming writing a bunch of letters to each of the credit bureaus but it will be well worth it in the long run. You will see items disappear quickly and your score begin to rise. When you add an explanation for poor items it looks better too. Fixing errors on your credit report is the first step to credit repair that will help you have the financial freedom you have been working toward.
Credit agencies are managed and ran by humans, and from time to time, humans have been known to make mistakes. This leaves the door wide open for there to be mistakes on your credit report. I am not saying there is, I am just saying there could be. In order to protect yourself and your credit standing, it is recommended that you review your credit report once every 90 days.
When you review your credit report, you may come across some information that just does not add up. When you do, you should record this information on a separate piece of paper. Some things to look for include: accounts that are not yours, accounts entered more than once, payments recorded as late when they were on time, discrepancies in amount owed, etc. If you have any questions about anything, write it down.
Your first instinct when you find something that you do not understand on your credit report is to panic. Your mind is filled with dark scenarios where someone stole your identity and is living the good life in a tropical paradise. Before you panic and send off a 10-page letter to the credit bureau, take a moment to review each account in question.
Sometimes accounts that appear out of place are actually legitimate. Take for instance collection accounts. Often, these accounts will appear under different names as the debt has been sold by the original creditor. For entries that you do not recognize, you should use the contact information provided. Call the company and ask who the original creditor was. Ask when the account was opened, at what branch, etc. This might clear up any questions that you have.
If it does not, you will need to contact the credit bureau by mail. Instead of writing a book, though, you should only send a brief explanation of why you think the account should not be on your credit report. Popular complaints include: I was not late, this is not my account, this is more than 7 years old, this collection was reported in error and so on. Keep this letter brief. Your purpose is only to bring the discrepancy to the credit bureaus attention. They will then contact the creditor and ask for verification of the debt. All you need to do is wait.
In most cases, erroneous entries will be removed at this stage. If not, you will have to contact the original creditor. Be sure to keep any correspondence from the creditor as you will need to send this to the credit bureau once your investigation is done. Keep in mind that creditors must respond to your requests within a limited amount of time. If they do not or if they fail to validate your debt, you can have the negative information removed from your credit report; you can also sue them for damages.
If you find an error on your report, there is no reason to sit back and do nothing. Your credit standing is at stake, and there are avenues that you can use to get information removed from your report. Take advantage of them. If you find it all confusing you should consider hiring a professional credit restoration company.
Both Ricardo Mendiola & Jay Delgado are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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