If you get your free annual credit report and discover there are some inaccuracies, you will want to dispute the information and work to get it corrected on your credit report. When you dispute the information, you are protected by the Fair Credit Reporting Act which requires that all credit reporting agencies (like Experian, TransUnion, etc) respond with an investigation of your creditors.
If the information disputed is found to be inaccurate- it will either be removed from your credit report or corrected within thirty days. Also, if the creditor is unable to proof their information is correct, it will be considered inaccurate and will have to be changed.
What Might Need to be Disputed?
When you get your credit report, you will want to look out for the following common areas that mistakes are found:
Inaccurate details- you may find that creditors have reported late payments to your file that you don't agree with. If you have back up information, like canceled checks or statements that show when the checks were cashed, you are more likely to be able to get the late notation removed.
Old, outdated information- on your credit report, negative account information can only be reported for seven years after the first delinquency; except Chapter 7 bankruptcy.
Fraudulent Accounts?definitely look out for accounts appearing on your credit report that you didn't open. This could signify that you have been the victim of identity theft, or that account information from someone with a name similar to yours has been mixed up with your information.
How to File a Credit Dispute
You should file your dispute in writing. This includes mailing a letter to the credit reporting agency or using their online form for filing disputes. The Fair Credit Report Act gives 30 days for the credit reporting agency to investigate the dispute claim and come to a conclusion on the situation. You will then receive the written results and a free copy of your credit report if any changes have been made.
The best way to file a dispute is to make a photo copy of your credit report and enclose it with your letter. Circle the dispute on the credit report and number it. In your letter, reference each number for each piece of information you are disputing with the reason you are disputing it.
For fast processing, be sure to include:
Your full name and mailing address
Your date of birth
Social security number
Name of creditor and the account number of the item you are disputing
And of course, don't forget to sign it!
Alternative Dispute Options
The other method of disputing information found on your credit report is to contact the creditor directly. If you contact a creditor and indicate that they have reported information incorrectly to your credit report, the FCRA states that they cannot then report that item at all to the credit report without including a note that you are disputing the information. Of course, if the information is found to be inaccurate or an error, it must be corrected on your report or removed.
What to Do if The Dispute Doesn't Result in a Settlement
It's not always simple to get a settlement on your dispute. If following the dispute process leaves you with an unsatisfactory result, you can then file a dispute with the National Consumer Assistance Center. Having the case re-investigated may or may not result in the deletion of an item off your credit report; but you can bet that you will need to have documentary evidence to get the credit bureaus to remove any information. Unfortunately, if you are successful in having items removed from your credit report, you may find them to reappear due to the instance of the creditor!
Another option is to contact your Attorney General's Office if you believe the credit bureau has violated the FCRA. You have the option to sue the credit bureau and/or creditor in either state or federal court if you feel they are in violation. If you win, all of your attorney fees and damages would be reimbursed to you.
Under 500 Credit Score
There are lots of different credit scores offered on the web. If you are starting a credit repair program you may want to benchmark your scores. So you are likely to go online, pick out a website and pay the price. Unfortunately, the odds are that the scores you purchase will have no resemblance to the scores a lender will use to underwrite a loan.
The Real Scores
There is only one website where you can purchase the same scores lenders use; this is MyFico.com, the website for Fair Isaac Corp the developer of the FICO scoring model. As a credit repair consultant it is a matter of daily consternation to me that the same credit bureaus that sell these important FICO scores directly to lenders will not sell FICO scores to consumers.
The Wrong Scores
You can purchase credit scores from Experian, Equifax, and TransUnion, but they are not FICO scores, and therefore of no real credit repair value. These credit bureau scores are of their own creation and exist solely for the purpose of cashing in on the ignorance of consumers. I cannot imagine any scenario where there would be no moral culpability on the part of the bureaus.
No Practical Application
I have heard it said that although these bureau scores are not the same as FICO scores they are a way for consumers to track changes in their reports. This is not so. The bureau scores just don't behave the same way. In other words, changes in your credit affect your FICO scores differently that they do the bureau scores. These bureau scores have no practical application, for credit repair or otherwise.
The Equifax Exception
For the record, Equifax offers the only credit repair friendly credit score. In fact, they do offer a FICO score. They currently use a previous generation of the software, and they only apply it to their own data, but it will generate a close approximation of your real score and generally behaves the same and could be used to monitor credit repair progress.
Measuring Credit Repair Progress
Unfortunately, this one credit bureau nod to integrity does not provide an optimal credit repair solution. You should know that many lenders, and all mortgage lenders, purchase all three FICO scores and use the middle of the three scores. An accurate measure of your credit repair status requires all three scores
Ask Your Lender for Your Reports
Given that lenders are able to purchase FICO score from the credit bureaus, you may have a roundabout way of getting your hands on a real tri-merged report with all three FICO scores. If you recently applied for a mortgage you may consider contacting your lender and asking for a copy of your report. Tri-merged mortgage credit reports are usually quite detailed and ideal for credit repair purposes.
Bend the Rules Just a Bit
By the book, lenders are not supposed to provide copies of reports directly to consumers. This is standard boiler plate language included in lender agreements with their report provider. The Fair Credit Reporting Act includes an information sharing clause; in the case of credit denial consumers are entitled to a copy of their reports, but this is a hassle compared with calling your lender and asking for the small favor.
Credit Repair and Your Reports
If you want your credit scores to establish a starting point for your credit repair effort I should say a bit more. If you go to MyFico.com to purchase your credit scores they will come complete with your three credit reports. Unfortunately, as if happens, even though Fair Isaac is the only source for your scores, they do a terrible job on the credit reports.
Fair Isaac Report Problems
MyFico.com credit reports are edited to the point of being useless for credit repair purposes. This is especially true if you intend to investigate all the information that should be available on your reports. Fair Isaac reports are highly sterilized, and in many cases actually exclude your account numbers, which you may need for your credit repair effort. So, for credit repair purposes you should get your reports from the credit bureaus. Phew!
Making Do
If it all seems crazy and unfair remember that the credit bureaus have the credit data, and Fair Isaac owns the credit scoring software. Everyone wants to make money and until they figure out a better way to work together we just have to make do as best as we can. Good luck!
Both Debbie Dragon & Ian Webber 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.
Debbie Dragon has sinced written about articles on various topics from Finances, Credit Cards and Kitchen Home Improvement. At CreditorWeb.com you can compare business credit cards and find the perfect card for any small business.. Debbie Dragon's top article generates over 165000 views. Bookmark Debbie Dragon to your Favourites.
Ian Webber has sinced written about articles on various topics from Home Management, Credit Loans and Free Credit Report Score. Ian Webber is an expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago where he earned his LLM. Ian consults with one of the leading online. Ian Webber's top article generates over 5400 views. Bookmark Ian Webber to your Favourites.
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