Tag: dispute letters

How to fight errors in your credit report

How to fight errors in your credit report

A well-designed dispute letter can help prevent rejection, the next time you apply for credit.

You’ve probably heard of “sticker shock”, but what about the shock of rejection of credit? This can happen when you apply for a new line of credit – a credit card airline miles new, or maybe even a mortgage – only to find yourself rejected for reasons you can not understand. Worse, when you get a good look at your credit report, you will find that you have entered do not even recognize, let alone agree with.

How do you fix something that was listed on your permanent record by one (or all) of these credit bureaus huge? Does this mean your credit is forever doomed? For starters, there is no need to panic, or anger. Unfortunately the errors on credit reports are not so rare. And even if it’s a pain in the neck, there are steps you can take to rectify the situation. This is the most important to be persistent, and document the process.

Know What You’re Up Against

Get a copy of your credit report from all three major agencies. You can do so online or by phone each of the major services: TransUnion, Equifax and Experian. Each credit report is divided into several sections, including a section covering personal information, requests for credit reports, accounts in good standing, elements of credit and potentially negative elements.

Analyze each of the three reports thoroughly and determine the accuracy of all information they contain. Much of what is on the report should be known to you as a loan you out, what you are looking for is errors. Make a list of all the elements that you feel doubtful or negative errors. (Also note the differences between the three credit reports). This will give you a start on solving problems and potentially improve your credit rating.

Documents and Disputes

If you find errors on your actual report, there are several steps that must be taken to resolve them. Under the Fair Credit Reporting Act (FCRA), the credit reporting agencies are responsible to correct inaccuracies and incomplete information on credit reports. This allows you the freedom (and responsibility) to contact the reporting agencies, which publish documents, to correct any inaccuracies you find.
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