Your credit report and score can affect nearly every aspect of your financial life.
A poor credit score can impact your ability to obtain credit cards, buy a home, or even get a job.
It can also cause you to pay thousands more in interest fees, and to be offered higher rates by car and home insurers.
What many people do not realize, though, is that credit reports are not always accurate.
If you believe that there are erroneous items on your credit report, you should take proper steps to dispute them, so that you can prevent these items from negatively impacting your life First, it is important to obtain copies of your credit report from all three major reporting agencies - Equifax, Experian, and TransUnion.
Because not all lenders and creditors report to all three agencies, the information contained on each report may be different.
Since a potential lender may pull one or all of these reports when considering you for credit, you should know what the lender is going to see.
You may know that you are entitled to obtain your credit report once per year for free, but there are other circumstances in which you can obtain your reports at no cost.
If you have been denied credit, insurance, or a job because of information in your credit file, you are eligible to obtain a free copy of your credit report.
Review your credit reports carefully, looking for information that is inaccurate.
Under the FCRA (Fair Credit Reporting Act), both the reporting agency and the creditor are responsible for correcting an erroneous item on your credit report.
You should contact both the reporting agency and the company that provided the inaccurate information.
Contact the creditor in writing if you suspect their reporting is inaccurate, and let them know that you are disputing the debt, and that you require validation.
If the company is a debt collection agency, be sure you ask for complete validation, and let them know that the possession of your name and social security number is not validation.
Require that they supply you with a contract, bill, receipt or other proof that you have accrued the debt.
If they can't provide validation, they must remove the item from your report in a timely manner.
Send your request in writing, and use certified mail, so you have proof of delivery.
Depending on their response, you may need the copy of your letter and proof of receipt to send to the credit reporting agency.
Once you dispute a debt by asking for validation, one of several things may happen:
The letter should list, in detail, which items you believe are inaccurate.
You should also include copies of any documents that support your position, such as payment confirmations or bank statements that show a disputed item was paid.
The reporting agency will be required to investigate the dispute, usually within thirty days.
After the investigation is complete, you will receive a letter explaining the results of the investigation.
If the investigation results in a change to your credit report, you will also be entitled to a copy of the report at no charge.
You can also request the reporting agency to send correction notices to any person or company that requested your report within the previous six months.
If you were turned down for a job within the past two years because of the inaccurate information, you can ask the reporting agency to send a correction notice to the employer as well.
You should monitor your credit reports several times a year, to make sure no inaccurate or misleading information has been placed on your file.
Once you have successfully disputed an item, make sure it doesn't reappear, and keep all of your documentation, just in case.
Monitoring and managing your credit file is an essential part of your financial outlook.
A poor credit score can impact your ability to obtain credit cards, buy a home, or even get a job.
It can also cause you to pay thousands more in interest fees, and to be offered higher rates by car and home insurers.
What many people do not realize, though, is that credit reports are not always accurate.
If you believe that there are erroneous items on your credit report, you should take proper steps to dispute them, so that you can prevent these items from negatively impacting your life First, it is important to obtain copies of your credit report from all three major reporting agencies - Equifax, Experian, and TransUnion.
Because not all lenders and creditors report to all three agencies, the information contained on each report may be different.
Since a potential lender may pull one or all of these reports when considering you for credit, you should know what the lender is going to see.
You may know that you are entitled to obtain your credit report once per year for free, but there are other circumstances in which you can obtain your reports at no cost.
If you have been denied credit, insurance, or a job because of information in your credit file, you are eligible to obtain a free copy of your credit report.
Review your credit reports carefully, looking for information that is inaccurate.
Under the FCRA (Fair Credit Reporting Act), both the reporting agency and the creditor are responsible for correcting an erroneous item on your credit report.
You should contact both the reporting agency and the company that provided the inaccurate information.
Contact the creditor in writing if you suspect their reporting is inaccurate, and let them know that you are disputing the debt, and that you require validation.
If the company is a debt collection agency, be sure you ask for complete validation, and let them know that the possession of your name and social security number is not validation.
Require that they supply you with a contract, bill, receipt or other proof that you have accrued the debt.
If they can't provide validation, they must remove the item from your report in a timely manner.
Send your request in writing, and use certified mail, so you have proof of delivery.
Depending on their response, you may need the copy of your letter and proof of receipt to send to the credit reporting agency.
Once you dispute a debt by asking for validation, one of several things may happen:
- The company may be able to provide you with proof of the debt.
If this is the case, you may need to work out a settlement (NEVER pay what they are asking, and never send them a dime without a letter from them stating they will delete upon receiving payment).
- The company will remove the item in question.
If this is the case, check your credit report to be sure this was done. - The company will not respond at all.
In this case, send a copy of your letter, with the certified mail receipt to the CRA, and ask them to verify.
If the collector can't verify, the credit reporting agency will delete the item.
You can also dispute this type of debt online.
The letter should list, in detail, which items you believe are inaccurate.
You should also include copies of any documents that support your position, such as payment confirmations or bank statements that show a disputed item was paid.
The reporting agency will be required to investigate the dispute, usually within thirty days.
After the investigation is complete, you will receive a letter explaining the results of the investigation.
If the investigation results in a change to your credit report, you will also be entitled to a copy of the report at no charge.
You can also request the reporting agency to send correction notices to any person or company that requested your report within the previous six months.
If you were turned down for a job within the past two years because of the inaccurate information, you can ask the reporting agency to send a correction notice to the employer as well.
You should monitor your credit reports several times a year, to make sure no inaccurate or misleading information has been placed on your file.
Once you have successfully disputed an item, make sure it doesn't reappear, and keep all of your documentation, just in case.
Monitoring and managing your credit file is an essential part of your financial outlook.
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