One out of every five people has at least one error on their credit reports, and it could be costing you! Be sure to check for inaccuracies before they damage your FICO score. You may be surprised to know that your name can appear on the list of alternative names you went by and even still have an open line after closing it. Or maybe there's late payment information for a credit card, which has never been paid! The possibilities are endless when looking into these things so don't let anything slip past without checking them first- otherwise, all bets could go down in flames very quickly your credit report is an important document that contains information about you. If there are any errors on it, they can negatively affect your score and make it difficult for future borrowing opportunities to arise! Fortunately, legal rights allow consumers to dispute inaccurate entries with creditors or bureaus directly don't wait until things get worse before trying this first!"
A credit dispute is an inquiry sent to the three major credit bureaus about any mistakes found on your credit report. If you regularly check and find errors, it can be harmful to both your credit score as well as how much money people think of borrowing from lenders in general because they're going off just one source's information!
A dispute is a request sent to the credit bureaus for their review and investigates any inaccuracies. By submitting your own, you are telling them that there's an error on records - either because of fraud or just misreporting!
You can submit your dispute as a letter, over the phone, or online.
Is sending a dispute free?
Yes, it’s free to send a dispute with the authority of the credit bureau. However, you need evidence when filing your disagreement, and be ready for them if they don't agree on what was submitted as proof.
Three steps for disputing information on your credit report
Are you looking to correct errors on your credit report? You have the right to be treated fairly and accurately. The three major bureaus must investigate any disputes, they will also forward all data that was provided by a furnisher (an organization providing the information) about an inaccurately reported item in question!
Here are the steps, in order, that you should take if you find an error on your credit report.
1. Send a letter to the bureau
The three major credit bureaus have very different ways to dispute inaccurate information on their reports. You can do so online or by sending a letter, but the address in correspondence must match what is shown for each company when you access your report — otherwise, they will ignore any complaints!
If you want a good chance at winning your dispute, make sure to send it through the mail. We recommend submitting all disputes online because doing so is more convenient and quicker than going through an old-fashioned process like mailing in written statements or documents but if there are things that bother us about our customer service then we will always take those issues up with them by phone as well!
The Federal Trade Commission has a sample letter you can use and adjust to your situation. Specifically, you must include:
- contact information - a statement about how this impacts or will impact their lives (e.g., loss of income)
Identify each item that you challenge
Explain why you challenge the information and go into detail
Request that the negative item be removed or corrected
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Equifax |
TransUnion |
Experian |
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Online |
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Equifax |
TransUnion LLC |
Experian |
When you dispute an item on your bill, the bureaus want to make sure that the information is accurate. They may be able to adjust it directly or send a request for validation from the creditor who reported it originally- if not they'll just remove this charge from appearing altogether!
2. Contact the data furnisher
Inaccurate information on your credit report can lead to a myriad of problems. If it's incorrect personal data, such as name and address--the bureaus are usually responsible for correcting this mistake themselves; however, if you suspect any inaccurate public records affect whether or not loans get approved then contacting an attorney might be necessary!
You should wait five days after you credit report the results before expecting a response from the company. If they stand by their claim, then there will be no resolution for this error in the time frame because it takes so long for them to process paperwork like that!
If you have a dispute with your credit report, the process is simple. You just need to fill out an easy form and give some information about yourself or one of our representatives can do it for you!
It’s important to note that credit bureaus are not obligated to investigate a claim if they decide it is "frivolous." For instance, you may find the following as frivolous:
Submit inaccurate or incomplete information on the dispute
Try to contest the same item multiple times without new evidence
Attempt to claim everything on your credit report is inaccurate, without proof
If a dispute is determined to be frivolous, the credit bureau only has five days from submission of evidence and an explanation as to why it should not deem this determination. If you have updated materials, then try again!
Common mistakes to avoid when filing a credit dispute
When filing a credit dispute, there are some mistakes that people commonly make. These can stall the process and if done incorrectly, end up hurting you more than helping!
Not all information can be disputed
Only information that is inaccurate, untimely, or unclear can be challenged. If you have accurate feedback on your credit report and score then it cannot be formally addressed with the bureaus since they consider this type of data irrelevant.
Negotiation can sometimes result in the removal of negative items from your credit report. If you negotiate with lenders, they may agree to remove them for a fee or by sending an agreeing letter that says so-and-so agrees on behalf of their company.
Choosing to challenge online or by phone
Credit bureaus are always looking for ways to make the process of disputing credit cards easier. The online system is convenient, but you should still do everything on paper in case there's an error that needs clarification or more information about your file fraudulently reported without permission from the creditor.
Although you can attach evidence to your online dispute, your best bet is to have a paper trail. This means:
Mailing a detailed letter via certified mail
Attaching evidence proving the mistake
Making copies for your records
Failing to read the terms of the agreement
The terms of use may include an arbitration clause, which means that you forgo your right to claim the credit bureau in court.
The average person only pays attention if they're being offered something for free or at a discount - but read the fine print before accepting!
What to expect after you submit your dispute
Most people don't even know to look for the terms of the agreement when purchasing or accepting a "free credit report." The ones that do, well they might as well give up because arbitration clauses are all over them and it'll be near impossible to make any kind of claim against these credit bureaus in court!
What to do if your dispute is rejected
When a dispute results in an unfavorable outcome, there's always the option to gather more evidence and attempt again. You can also add your statement of disagreement when reviewing personal statements with lenders or during tenant approval processes where they look only at numbers - but sometimes this helps too if you're not sure which way is going towards approval!
Can submitting a credit dispute hurt your credit?
A bad credit score can seriously hamper your ability to get loans, like mortgages and car finance. This is why you need to make sure all of the information on these reports is accurate before applying!
You may have heard that filing a dispute can affect your credit score, but this is not true. If the information on the report changes after you file for an adjustment-like removing mistakenly reported late payments or correcting personal errors such as name pronunciation-then it will improve rather than decrease how lenders see you
Filing disputes isn't going to drop what's already there: if something was wrong with my profile before we sorted out all of these issues then now I'm in better standing because he took care Of everything and fixed things up!
A lower credit score resulting from questionable negative information on your report can unfairly prevent you from qualifying for a loan, keep you out of the market entirely, and even make it difficult to get approved for that dream job.
A poor FICO Score doesn’t just mean higher interest rates; It impacts all aspects of life- whether it be getting insurance or applying for utilities like electricity providers!
Talk to us at (888) 803-7889 today and learn everything you need to know about credit scores and how to improve yours.