How to Dispute Negative Items on Your Credit Report

If you get a loan from an institution and you default, the institution can report the matter to credit bureaus. Apart from loan defaulting, if you fail to pay your bills on time, the companies can report the issue to credit bureaus, and you will get poor ratings on your credit score. The poor ratings will affect you because most areas where you will need financial assistance the matter will be taken into account. Some jobs will require you to have good credit records. You can end up failing to qualify for a job opportunity due to your poor credit history. Sometimes you may have good track records in settling your debts and paying bills on time, but a wrong record is entered on your credit report. You can look for ways of rectifying the situation.

Why you should dispute a negative item on your credit report

  • The information affects your ability to access a loan at affordable interest rates
  • It affects major purchases such as buying a home or car
  • To safeguard against negative records, this can affect whether you can get insurance cover at reasonable premiums.
  • How to dispute negative items on your credit report
  • Request a fresh report directly from the credit bureaus

You may access a credit report from reseller or agents of the credit bureau. The report may have been mishandled which lead you to access negative items on your credit. To know whether the negative item exists on your credit report it is necessary for you to order the report from the credit bureaus directly so that you can be sure and make more steps toward correcting the problem.

Check the report for minor errorsĀ 

For you to know whether the credit report was directed to you wrongly or there is an identity theft which leads you to get negative records. You should study the credit report closely and take note of any errors which may have been there. You should check on details such as a negative court case which is indicated on the report, wrong address or even misspelling of your official names.

Mark up the credit report while highlighting the mistakes

While preparing to write a dispute, you should photocopy the report and highlight errors by underlining them. The process makes it easy for you to identify all mistakes and refer to them while making your story.

Write or type your dispute letter

You should write your dispute letter or type it manually. The highlights on the copy will make it easy for you to refer to different entries which you dispute. Explain various errors which may have been entered wrongly. There are some platforms which allow you to discuss the errors online, but you should go further and write a letter explaining all details you find wrong on your credit score.

Separate disputes into multiple letters

If you have several negative reports on your credit score, then you better dispute each of them in a different letter. It can be hectic, but remember your credit report is something that affects your finance hence it will change your life, you should always write all the letters and address to your credit bureau so that the errors can be corrected. It is also easy for you to have the errors corrected within a short period if each is addressed in a separate letter. Keep each letter simple while addressing your negative entries.

Include evidence.

There are different entries which may be entered. For example, you may have the report indicating that you defaulted a given loan, if you have letters of clearance from your lender, you can include the evidence. It is necessary to include all evidence you have at your disposal so that you can have the issue addressed within a short period.

Mail your dispute to the credit bureaus and the data furnisher

After you have written the dispute letter, you should send a copy to your credit bureau as well as the data furnisher. If you had taken a loan and repaid in time, but you discover the lender has furnished the credit bureau with wrong information, you should inform the lender about your dispute by writing as well as the credit bureau. It is necessary for you to inform the two parties because they work hand in hand for your credit score to be corrected.

 

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Do You Need Credit Repair?

Experiencing poor credit scores is inevitable in the business world! Mistakes, as well as other inaccurate information on your credit report, are not your fault and in a perfect world would not affect you in any way. The world is however not perfect, and you are bound to suffer devastating losses on your account! Credit repair can be your solution. It’s the process of fixing a bad credit report. In some cases, it is as simple as fixing mistakes with the credit agencies.

Credit repair companies provide a way out of this by fixing a bad credit report for whatever reason it deteriorated in the first place. In some cases, the credit repair process may require legal as well as financial expertise depending on the extent of the problem. Nevertheless, credit repair does not always work in all cases! It actually works if you have legitimate errors in your credit report, if the errors you have cannot be verified and if your lenders are willing to work with credit repair agencies.

So how do I begin repairing my credit history?

When the term credit repair is mentioned, people tend to associate it with organizations that charge a fee, promising to rid your credit of negative information. This is, however, something you are capable of doing for yourself! If you feel that there is inaccurate information appearing on your credit reports, you are obliged to contact any credit reporting agency and dispute that information at $0 charge!

Credit repair companies have no special rights or privileges when it comes to arguing information on your credit reports! They are regulated by the Credit Repair Organization Act. Therefore, it is essential to be aware and cognize your rights under this state law. The law requires from the organization;

  • It must provide a written contract for the services it will provide specified as well as allow three days for you to withdraw from the contract.
  • It cannot advise you to make false claims or modify your identity which could make you guilty of credit fraud.
  • Cannot promise to remove precise information from your credit report in return for payment and in addition, it cannot take any payment until it fulfills all the terms of the contract.

It is evident that the CROA is all about consumer protection from companies that charge them and deceitfully assure them on negative but correct items removed from their credit reports or magically improve low credit scores that are grounded on accurate information.

How can I improve my credit scores?

The most common way to improve your credit scores is by paying your bills on time. It is evidently more beneficial to you because the money you would otherwise spend on hiring a credit repair firm can as well be used to pay outstanding debts on your credit report and update any past dues on your account.

After receiving a credit score, pay attention to the list of elements in your credit report that mostly affect your score. This will help you determine what changes you can make to increase your credit rating.

Be aware of your credit utilization rate. Basically, this is a sum of all of your revolving debt such as your credit card balances divided by the overall credit that is available to you (your credit limits). To be safe, keep your credit utilization rate below thirty percent (30%)

Consider how many credit accounts you have. If you have outstanding debts across different accounts, it is advisable to pay off some of the accounts if you have the means. After paying off, keep the account open which can be a plus in your whole credit mix since they are matured accounts in good standing. Finally, avoid opening several credit accounts in a short period of time as this may seem perilous to moneylenders and negatively impact your credit scores.

There are a lot of credit repair companiesĀ listed on the link but make sure when determining a good credit repair company, look for longevity, reputation, and money-back.

Bottom line, a credit repair company is not a warranty to fix your credit scores. However, if you are aware of the risks and select a reputable company with a good money-back guarantee, you can buoyantly evade being burned.

 

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