How much do you trust the info on your credit report? Did you know that not all the info on credit reports is correct and you do have the right to dispute credit report errors?
Your credit report shows the history of how you’ve paid for your payments, how credit-worthy you are and how many credit inquires or derogatory items you have. Every time you fill out a credit-based application form, your credit report is pulled for review. If the info on your credit report is inaccurate, it could affect your chance to receive better interest rate or loan term and sometimes you could end up being denied. Therefore, it’s crucial to verify each item on your credit report periodically and dispute credit report errors.
The Fair Credit Reporting Act gives consumers the right to submit credit report dispute to credit bureaus to delete inaccurate information, if there are any errors on the credit report.
When you dispute credit errors with the credit bureaus, by law, they have 30 days to validate the information. If the information cannot be verified, it must be removed.
Credit report errors
- The following items are the most common errors found in credit report
- Credit limits reported lower than actually limits.
- Late payments, collections, charge-offs and derogatory items that aren’t yours.
- Accounts listed as “paid charge-off”, “settled”, “paid derogatory,” or anything other than “paid as agreed” or “current” when you paid in full or on time.
- Accounts still listed as “unpaid”, which were included in a bankruptcy.
- Derogatory items over 7 years-old that should have fallen off from your reports.
How to dispute credit report
Be sure to have all the statements ready for reference before you begin your dispute. All disputes should be in writing. Here are the 3 basic steps to dispute credit report:
1.)Contact the financial institution that reported your info to the credit bureaus and find out what info is needed to dispute credit report. Then mail them the proper document.
2.)Send a letter to the credit reporting agency or credit bureaus that listed the inaccurate info on your credit report. Make sure you mail documents that support your claims. For example if you are disputing the item that you’ve paid off on an old debt, you should mail in the receipt or last statement that states you have paid off the balance.
3.)The credit reporting agency must look into the claim within 30 days and send you a copy of the outcomes, regardless if there are errors found or not . Once you receive the letter, you can request the financial institution that reported incorrect information to resubmit the revised info.
Disputing credit report can be time consuming. It is best to start the process as soon as you find an error on your credit report.