Credit Bureau Dispute – How to Win
March 25th, 2009, Written By: admin
Did you know that nearly one in four credit reports contain errors that could be unnecessarily damaging your credit score? An effective credit bureau dispute will not only eliminate errors, but it is entirely possible to remove the negative items from your file that are factual. While there are laws in place that require credit reporting agencies to report accurate information, it doesn’t always happen that way. There’s just too many transactions for too many people to manage, and every so often the wrong information is placed on the wrong person’s credit report.
Besides these unintentional errors, there are companies and collection agencies that will place negative items on your report that don’t belong there. Think of how many times you made a payment on time and your credit card company said they never received it. Because of their poor accounting management, you suffer when they report that misinformation to the reporting agencies.
The Fair Credit Reporting Act is a law that is in the consumer’s favor, and allows you to dispute any item on your report. Each time you file a dispute, the bureau must, by law, investigate the dispute and respond within 30 days. If they are unable to fine enough evidence to support the item on your credit report, it must be removed, which in many cases will instantly improve your credit score.
In order to perform an effective credit bureau dispute, you must first have the most current copy of your credit reports from all three reporting agencies (Trans Union, Experian, and EquiFax). This information can change overnight, so what was on your file a month ago may be different that what you see today. Once you have your report, indicate all of the items that you would like to dispute. Word of caution: Don’t dispute everything at once. Focus on no more than 5 items to start with that have the most significant impact on your credit rating. You’ll get a much better response that way.
Once you have indicated the items in dispute on your credit report, write your dispute letter, clearly indicating the item you are disputing and why. Enclose a copy of your report that highlights these items as well. Mail the letter to the reporting agency’s dispute department via certified mail, return receipt requested. This step is important because it will provide proof of the date when the reporting agency receives your letter.
Wait 30 days for a response. If you do not hear back, send a follow up letter explaining that the dispute was sent on X date, that you have not heard back in 30+ days, and by law the item must be removed from your credit report. Many times by disputing items that are in fact legitimate claims on your report, you can get them removed. It’s worth a shot anyway.
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Categories: Credit Report Dispute
