It is crucial to report any errors on your credit history. You can do so by writing to the credit-reporting agencies and submitting copies of supporting documents and proof of identity. In your dispute letter, you should identify the incorrect information, explain why it's wrong, and ask for a deletion or correction. Generally, you should hear back from the credit-reporting agencies within 30 days. If you do not get a response within 30 days, send another correspondence referencing the original dispute.
Common types of credit reporting errors
American consumers have a problem with credit reporting. Incorrect information on credit reports can make applying for loans more difficult and even reduce your credit score. There are several easy ways to check for errors in your credit reports. There are four types of errors which could impact your credit.
The first error is an identity error. It can include a misspelled address, an incorrect account number, or an account with the wrong information. A wrong credit limit or account balance could also be errors.
They can be disputed in a variety of ways
The process of filing a dispute is quick and easy. The form can be completed online or printed to send to credit reporting agencies. Many financial counselors suggest that you send a letter via certified mail with an acknowledgment. This will allow you to keep a record of the transaction. Once your dispute is submitted, the credit reporting agencies have 30 days to investigate and report back to you. Attach a copy your credit card report to speed up the process. Highlight any errors.
All disputes against you are subject to investigation by credit bureaus. However, the process can take up to a month. In some cases, the bureaus may need up to 30 days to investigate your dispute.
Neglecting to dispute them can have devastating effects
Inaccurate credit information can affect your ability to apply for credit cards, insurance, or even a job. These errors can be corrected by disputing them. The process is tedious but can help avoid serious consequences. Ofttimes, inaccurate information may go unnoticed until years later.
The first step in disputing a report error is to contact the data furnisher or credit bureau. Equifax, Experian, or TransUnion are all examples. You'll need to supply identifying documents like your current bank statements. These will show your name as well as your address. Other documents you'll need to submit are court documents, bankruptcy schedules, or letters from lenders that prove the account is yours. In some cases you may be asked to show evidence that you are a victim or identity theft.
Avoiding disputing them is costly
Here are some things to do if you were recently notified about a credit reporting error. First, you need to understand how to dispute the error. Credit bureaus are permitted to report unauthorized queries if they have not been disputed. However if you fail to dispute these items, it could result in them being kept on your credit file.
You should give the credit bureau new information when you dispute credit reporting mistakes. If the agency does not receive the information, it may reject the dispute as frivolous. You can also contact the Consumer Financial Protection Bureau to file a complaint. If necessary, the bureau can forward your complaint to the credit report agency or another government agency.