There are many errors that are common on the credit report. Knowledge of these errors helps understand the best way to dispute a credit report. These errors can be broadly categorized into two:
The user a long time ago but still accumulating debt in the credit report may have closed an account. The credit bureau may not have updated their records and thus still considers the account. On the same, the account may be noted as closed by the debt provider while it was actually closed by the user. This indication on the credit report may have a negative massive effect on your credit score.
At times an account of an ex-spouse may be still showing in the credit report while information may have been passed for closing the account after divorce. Accounts also may be appearing more than once in the credit report, thus showing a larger debt than it is actually owed. Bad debts dating more than seven years appearing in the credit report is another common error, which shows a larger debt accumulation.
Either personal or financial information in the credit report may be entered wrongly. Information including and not limited to personal address, employment details, bank details, incorrect dates and incorrect financial charges are items that call for disputing a credit report.
Noting incorrect information and errors in the credit report is the very first step of the process of disputing a credit report. The consequences of the error should be the motivation of filling a dispute. The dispute can be reported either to the credit provider, the credit bureau or both. There are various ways provided for reporting such as, emails, feedback options in websites and phone calls, but the best way to dispute credit report is by literally writing a dispute credit report letter.
The letter shows the specific error in the credit report and note the source of the error. Attached to this letter should be the supporting documents and evidence relevant, such as the official payment receipts of the disputed charges available. Many bureaus and credit providers prefer direct and precise information especially in dispute matters to enable quick respond. It is advisable to allocate each dispute in the credit report in separate dispute of credit report letters for them to be accorded separate undivided attention in solving.
Disputing credit report items
After filling a dispute on things in your credit report, it takes the relevant bodies approximately 30 - 45 working days to respond to the dispute filled. For incorrect information errors, it takes most bureaus a maximum of 14 days to correct the errors, while for account and charge errors it takes longer as it requires more time for investigation and consultation.
It may happen that you or other 3rd parties require your credit report after a dispute has been filled. The credit bureau in such a situation should mark the items in the credit report that are being investigated for correction. This helps notify the users of the credit report of the errors noted and in the correction process.
After correction, the bureau or the debt provider should notify you of the results of the dispute, which you can accept or deny. If you deny, there are further appeal steps to follow. You may require the bureau to send and notify anyone who requested for your credit report in the last six months on the new developments.
For a healthy financial future, it is important to review your credit report regularly for any errors and initiate the process of disputing these errors in your credit report. Timely dispute of credit reports may improve your credit score considerably.