The road to good credit often requires repair. Keeping track of information in your credit report is one way to ensure a smooth journey. If you find incorrect information, the credit bureaus are required by law to remove it immediately. Disputing information in your report is free. Beware of any company or organization that offers to aid you in your disputes for a fee.
Fair Credit Reporting Act
The Fair Credit Reporting Act protects your credit report from inaccurate information. According to this 1974 law, you have the right to know what's in your credit report and remove any incorrect information. As of 2005, consumers are entitled to a free credit report from the three major credit bureaus. Obtain your report at the Annual Credit Report website. Review each report carefully to keep your information up to date.
Online Dispute
Occasionally, items in your credit report will be wrong. You have multiple options to dispute the information. If you review your credit report online, you can highlight the selected account and click the option to dispute the account. All three bureaus allow you to choose from a list of reasons regarding why you want to dispute the item. Reasons include "Unauthorized account" or "This account is paid as agreed." Click the option you want and add any notes in the provided space. The notes tell the credit bureau in further detail why you are disputing the item.
Disputes by Mail
When disputing information in your credit report by mail, print a copy of your credit report and circle the information you want to dispute. Include a letter explaining why you want to dispute the information or provide copies of bank statements or bills that reflect the reason for your dispute. For example, if you paid a debt from your bank account and your credit report shows the payment as late, your bank statement verifies your claim of having paid on time.
Time Frame
Creditors have 30 days to respond to your dispute with proof of the information reported. If the creditor cannot reply within the given time frame or cannot produce proof, the information is removed. By the end of the next credit cycle, which is usually 30 days, your credit report should reflect the new information. If you submit your dispute by mail, give the creditors up to a week to receive your dispute information unless your dispute is sent via express mail.
Considerations
If your disputes are not removed from your credit report, but an item is false, credit bureaus generally allow you to include a note on your account. While this note does not improve your credit score, it gives creditors your side of the story which could be the difference in receiving access to new credit accounts. Correct information in your report can only be resolved through a change in your credit habits. Over time, making timely payments and avoiding spending too much on your credit accounts leads to a good credit rating.
0 comments:
Post a Comment