Diligence is Key When Filing a Dispute with the Credit Bureaus
It’s a shame that the majority of people don’t know about filing disputes with the credit bureaus. It’s true; there are people out there that have no idea about their rights when it comes to credit bureaus. But people file disputes with them every day.
Credit bureaus are responsible for maintaining credit records for prospective lenders but their records are not always accurate. Common mistakes on a credit report include incorrect information in the following areas: personal information, public record information, account information, negative statements, and old credit inquiries.
A lot of people have these common mistakes on their credit reports and don’t even know it. You may not know it until you apply for a new job or for some type of loan.
Here is a scenario that happens all too often: you apply for a loan or a new job. When asked about your credit you say it’s fine. After your credit check comes back, it’s not fine like you had said that it was. Your lender or prospective employer has to turn you away for the time being. Because of faulty information on your credit report, you have to put a stop to your plans for now.
This kind of situation happens to people every day and it can put major waves in any plans that you may have. That’s why it’s important to get copies of your credit report on a regular basis. If you regularly get copies of your report it will be easier to clear up any mistakes that show up. You can get incorrect information corrected before it does any real damage.
So what should you do if you find faulty information on your credit report? Good question. The first thing is do not ignore mistakes. This might seem obvious but to some it really isn’t. You may think that it’s not a big deal or that it will go away with time but don’t fall into that trap. The credit bureaus aren’t responsible for keeping track of whether or not your report is correct. If you want something changed then you need to take action and get it changed.
The Fair Credit Reporting Act gives consumers many rights when it comes to credit bureaus. If there is something on your credit report that you don’t think is right, through this act, you have the right to dispute it. Now don’t start tensing up and having trouble breathing just from the word “dispute.” It’s really not a big deal; it’s actually pretty simple. And if more people knew that, they could easily repair the mistakes in their reports as well.
It is important to point out documentation. It is very important. Everything that you send to the credit bureau and everything that you receive from them needs to be kept. Get a manila folder and label it whatever you choose. Put everything about this dispute into that folder. If you send something to them, make a copy of it and keep it in that folder. That way if anything needs to be verified you have what you need to do it.
To file a dispute you simply write a letter to the credit bureau. The letter needs to include all of your pertinent information: name, phone number, address, social security number, etc. In the letter you simply state what you are disputing and why. It’s extremely helpful if you include a copy of the report in question and highlight the part that is incorrect.
But don’t stop there. Just because you’ve filed a dispute doesn’t mean that the information will automatically be removed. Now the credit bureau has to contact the creditor and verify the information by investigating where it came from and why.
From the time they start the investigation, the credit bureau has 30 days in which to investigate the matter and come up with a solution. If they can’t verify the information on your credit report then they must remove it. This doesn’t always happen though. That’s why it’s up to you to be diligent and timely.
After 30 days go by, call the credit bureau and ask what they’ve decided about the investigation. If they haven’t verified the information tell them that their 30 days have passed and they now need to remove the incorrect item from your credit report. Tell them that you will also send a letter in writing for verification purposes and that you would like an updated copy of your credit report that shows the changes.
This should be the end of your dispute. If the incorrect item could not be verified then it should be removed from your credit report. If the item was verified and they cannot remove it from your credit report there’s still something you can do. You have the right to add a 100-word statement to your credit report. Simply write (in 100 words or less) what you would like future creditors to see and understand about that item. Because once you submit the statement, anyone that pulls your credit report will read it.
When filing a dispute just remember: keep records of everything, diligence is the key to getting what you want, and take advantage of the 100 word statement if need be.
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