Monitoring your credit report is essential to maintaining or building good credit. It is important to review the information contained in your credit report, since even a small discrepancy or error can have a substantial negative impact on your score. You have the right to dispute incorrect information. Filing an online dispute is a free, fast and secure method used to prompt an investigation by the credit bureaus. After the investigation, any errors must be corrected.
Date of Last Activity
Pay close attention to the date of last activity, listed as DOLA on your credit report. This date is 180 days from your last delinquency. In some cases, creditors will report recent activity in an attempt to "re-age" the account. More recent negative account activity will have a more substantial impact on a credit score. The creditor performs the illegal practice hoping the effect on the credit score will urge the consumer to resolve the debt immediately. Regardless of whether the debt changes collection agencies, the DOLA cannot be changed without payment activity. Keep in mind, if you contact the collection agency or debtor and resume making payments, the date can be changed.
Outdated Information
Most negative information can only remain on your credit report for a limited time. If the items remain on the report longer, a dispute can be filed to have them removed. Late payments, collections, foreclosure and Chapter 13 bankruptcy can remain on a credit report for seven years. Chapter 7 bankruptcy can stay on your credit report for up to 10 years. Begin an online dispute to stop out-of-date, negative accounts from lowering your credit score. After the online investigation is complete, you will receive an updated copy of your credit report.
Incorrect Information
Even the smallest error, such as your name, can affect you. Spelling errors in your name can make it difficult to obtain your credit file. If your credit report is showing a late payment, file a dispute and provide evidence to prove your payment was made on time. Since payment history accounts for 35 percent of your credit score, according to MyFICO.com, it is crucial to resolve any payment errors. Account balances on either revolving or delinquent accounts may be reported incorrectly. After filing your online dispute, you may be contacted with a request to submit additional information to support the claim, including statements from the creditor or proof of payment. By filing online, you eliminate the delay that can occur in communication and processing when disputes are initiated through the mail.
Suspicious Accounts
If you do not recognize an account, you have the right to dispute the debt. Suspicious accounts could be a sign of identity theft. Check the inquiry section of your credit report, as well. If you see creditors with whom you did not submit applications, consider placing a fraud alert or temporary credit freeze on your credit file for protection. You will need to contact all three bureaus and dispute each account. An online dispute can be filed 24 hours a day. If you suspect identity theft, act immediately to prevent further credit consequences.
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