The problem with disputing the major credit bureaus is that many resolutions are time consuming; so people tend to forget or assume the matter has been resolved. Nevertheless, disputing the credit bureaus can be beneficial and rewarding. If you decide to dispute the credit bureaus, just keep in mind that if you do not receive a response from them in 30 business days, the information is then resolved and should be removed from your credit report.
Types of Credit Bureaus
There are three main credit bureaus: Experian, Equifax and TransUnion. When investigating your credit report and credit scores, it is very important to request the information from all three credit bureaus. At times, it may be beneficial to get help from an attorney who specializes in dealing with these bureaus and is well-versed in the Fair and Accurate Credit Transactions Act.
The Facts
Information on your credit report can be disputed, but determining the information to be disputed can take a lot of effort. Oftentimes, individuals find themselves disputing information that is not theirs or disputing accounts they did not hold.
You definitely need a paper trail when you make a dispute against something on your credit report. For that reason, rather than requesting a dispute via online or email, the U.S. Federal Trade Commission (FTC) recommends that each dispute be filed through written request and sent certified mail with a signature request. The recommendation of mailing a dispute is for the protection of the individual.
Each credit bureau is also allowed ample time to contact the business or company that has filed a complaint against an individual for their side of the investigation. This process can take some time--sometimes several months, but generally 30 days; however, the credit bureau must definitely notify you with findings.
The Problems
Disputing the credit bureaus can result for many in a better credit score; however, this is not always the case. Many individuals have found that when disputing the credit bureaus, their credit is not phased. The credit bureaus use a two-digit code with each dispute that is filed.
The most common problem with the two-digit code is the selections. The codes that are primarily chosen are "account not his/hers," "claims account closed" and "other." These codes do not benefit individuals with their dispute and may result in a longer, sometimes costly dispute. There are some that do find that these two-digit codes have helped in saving their credit score from falling.
The cost of disputing a credit bureau can be free; unfortunately many individuals find themselves paying for an attorney's assistance with their dispute.
The Benefit of Disputing with the Credit Bureaus
The benefits of disputing an erroneous credit report are that, upon favorable resolution, you get an opportunity to obtain loans at better interest rates, perhaps better credit card offers and a better standing with financial institutions that would otherwise not have been interested in you because of your credit history.
Preventative Measures
To protect your credit profile, keep a paper trail of your accounts and check your credit report from each credit bureau at least once a year.
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