Disputing Credit Report Errors Effectively

Disputing Credit Report Errors Effectively

Disputing credit report errors is one of the most effective ways to quickly increase credit score.   As with any aspect of financial record keeping errors are always a possibility and a credit report is no exception.   Erroneous information can have a negative impact on your overall credit score.   By disputing these credit report errors not only will you be giving potential creditors a more accurate picture of your creditworthiness, but you will likely increase your overall credit score as well.

Disputing Credit Report Errors Starts With A Thorough Review

The first step to disputing any credit errors is to know exactly what is being reported on your credit report.   At the very minimum you should request an annual free copy of your credit report from the 3 major credit reporting agencies.  Those credit reporting agencies are:  Trans Union, Equifax and Experian.   Once you receive those reports it is important that you take the time to evaluate the information being reported.   Take special note of things that may be considered derogatory information.   This would include such things as the length of time the account has been open, the total amount of credit extended, any record of slow pays and the designation of those slow pays (e.g. 30 day, 60 day or 90 day).  Additionally you will want to make note of any record of judgments, charge offs, repossessions or other adverse items and their final disposition.

Properly Disputing Credit Report Errors

When you find information on your credit report that you believe to be in error, it is important that you begin the process of disputing those credit report errors.   The first step in this process is to collect any supporting documentation that you may have in your possession.  This could include such things as cancelled checks, correspondence from the lender or paid receipts.   Once you have your supporting documentation gathered, make copies that you will include with your written letter of dispute.

Your dispute letter should identify the areas of your credit report that you are challenging.  This letter will be written to the credit bureau reporting the incorrect information.   Each credit bureau has a written process for disputing credit report errors, be sure to follow each step of the process as instructed.

Once the dispute letter is received, the credit bureau will notify the reporting creditor of the dispute.   The creditor is required to respond to the credit reporting agency in designated period of time to either uphold the current data on the report or to correct the information being reported.

Although this process can be handled on your own, it is advisable that you use the services of a credit dispute company.  These professionals are trained to look for errors that the average person may overlook and they are familiar with the process of dispute that each of the major credit bureaus uses.

By taking the time to dispute credit report errors you can increase credit scores very quickly and provide potential lenders with a much more accurate picture of you as a borrower.

 

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