Credit Report: 4 Important Steps to Dispute the Wrong Information

If there is any wrong information in your credit report then you need to dispute it properly. Under FCRA or Fair credit reporting act, the credit reporting bureaus – Equifax, Experian and Transunion should rectify the false information that is written on your credit report. Besides this, the creditor that has given the false information on your report should make it a point to rectify it too.

You should evaluate your credit report once every year in order to see if you are having a good credit score and also if there is any mistake on the report. If you want you can take the help of credit counseling services so that you can handle your money better and avoid incurring debt in the future.

4 Steps to dispute incorrect information from your credit report

Your credit report plays an important role when you want to take out any kind of loan or submit an application for a new credit card. As such, if there is any false information on your report, make sure you get it corrected immediately. Check out the 4 steps that will help you dispute errors from the credit report.

1. Go through your credit report thoroughly – In order to find the wrong information on your report, you will have to go through it carefully. You need to know that the three credit reporting bureaus offer you the credit report free of cost once in a year. Always try to get it from them. In case, you cannot get the free credit report, order one by paying $10-$20 as per the bureau. Thus, after you get the credit report, take a look at it and mark the incorrect items that are there.

2. Make a note of the disputable items – You can actually dispute anything. However, you must note that the credit bureau will conduct thorough investigation and will delete those items that are required by the law. You may dispute the items that are incorrect,out of date, incomplete or which can not be verified. The negative items will stay on the credit report for at least seven years. However, bankruptcy will remain on your credit report for ten years. In case you’re having negative entries that are more than seven years old, you may dispute them.

3. Collect the necessary documents for the dispute – If you want to dispute the wrong information with the credit bureaus, you will have to provide the necessary documents that will support your claim. In case you had opened a mortgage account in a year and it is reported wrongly, you’ll then have to collect the necessary documents that will provide evidence when the mortgage had originated. Mark the errors on the credit report and make copies of necessary documents so that you may send them along with the dispute letter.

4. Draft the dispute letter for sending the bureaus – You’ll have to draft the dispute letter stating the errors on the credit report that you are going to send to the bureaus. It is definitely good to dispute the incorrect information in a written form and also keep a copy with you. Make sure you follow the guidelines of the Federal Trade Commission (FTC) properly in order to draft the dispute letter. Do include the supporting documents and wrong information marked on your credit report in the letter.

Thus, you will have to follow the above-discussed steps in order to remove the incorrect information from your credit report.

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