Managing your credit is like a part-time job. You have to check it regularly to ensure that the information is correct. You can either pull your own report or pay for a credit monitoring service. If you notice a discrepancy you must initiate credit dispute procedures immediately.
Credit Errors
Approximately 80 percent of credit history reports contain mistakes, according to the U.S. Public Interest Research Group. Out of that number, 25 percent contain mistakes that could cause problems getting credit. If you have incorrect information listed on your credit report, whether it's a late payment or an inaccurate public record, it could negatively affect your credit score and prevent you from getting approved for credit at desirable interest rates.
Identify Errors
The first step in the dispute process is to find the mistakes on your credit report. When you notice an inconsistency, write down the account number, creditor name, date and amount (if any) in question. Check each item listed against your personal records to ensure that it's wrong before you proceed. Keep a copy of the report handy as well as any proof you have of the error.
Write and Submit Dispute
The next step in the credit dispute process is to write a letter of dispute. In it you should explain the purpose of the letter and write down all pertinent information related to the charge you want to challenge. Ask the agency to look into the matter and remove or change the incorrect item as soon as possible. Send the letter to each bureau that reports the incorrect data. Enclose your proof, if available, as well. You can also dispute the item online in some cases using the same process.
Await Word
You must wait at least a month to hear a response to your dispute. The credit reporting agency contacts the creditor to verify your information. The creditor must then reply regarding the matter within a certain number of days---usually about 30 days. If the creditor agrees or doesn't respond in time, the agency removes or changes the item per your request. You can also ask the agency to send a note containing the updated information to creditors who have recently viewed the incorrect report.
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