Sometimes a credit
dispute is vital to maintaining a clean credit history. Each detail
great or small included in your report may make or break your future
financial opportunities. It is important to learn how to view and
compare items closely in order to see your strong and weak areas.
Identifying errors and correcting them will significantly improve
your overall credit score.
Getting Your Free Copy
Once every year, the three main bureaus in fulfillment of the
requirement set by an amendment to the
FCRA or Fair Credit Reporting
Act should provide you with a free copy of your credit report OR
annual credit report. You should request each of these nationwide
consumer reporting companies to get your copy (i.e. Experian,
Transunion, Equifax). At an additional fee, you may ask for a recent
copy more than once. Your credit report will include specific data
such as your home address, your manner of paying bills, when you pay
your bills, whether or not you've been involved in any fraudulent
transactions, whether or not you've been sued or arrested or if
you've ever filed for bankruptcy. Don't begin any credit report repair tactics until
you have access to all three credit bureau reports so you can
formulate a plan of action.
The bureaus can show your credit report to insurance companies,
offices and potential creditors at a price for them to evaluate your
credit application and to know if you have the ability to pay bills
and eligible to receive credit. Privacy and accuracy of history
information is guaranteed by the federal FCRA. You need to check
your credit report regularly to know if you can get a loan and
determine how much money you need to get a loan. The information
will help you gauge your current standing and credentials to apply
for a job, get a home or car loan as well as stay protected against
fraudulent acts that makes use of any personal information such as
your Social Security number.
Finding the Flaws
Begin checking for inconsistencies before initiating a credit
dispute. Look for items that may negatively affect your overall
credit score such as errors stating that you paid late or missed
paying bills, use of credit without your consent or knowledge, wrong
names or data typed in the files or inaccurate figures. Compare all
three copies to see errors and differences.
Report all errors you see by writing a letter to the consumer
reporting company and identifying the information which you believe
is inaccurate and begin the resolution program. Include copies of
documents to support your claim and explain why your request is
valid. Provide clear facts and evidences and ask for the information
to be changed or removed. Ask for a return receipt as well to make
sure that the company received your letter. Keep a copy of all
documents you mail.
The bureaus usually investigate the files within 30 days then inform
you about the outcome. You should be provided with sufficient
information if they believe that the information should stay as it
is. If they correct the inaccuracy, you will be provided with a new
copy which includes the new changes. The company should also contact
your creditors informing them about the corrections. You may need to
contact the other bureaus as well to update credit dispute
information. Always inform creditors and the consumer company that
you are disputing an item. Even if your dispute is not resolved, you
can still ask the company to attach a statement of your dispute in
your credit report should any potential creditor request it.
