It's continually amazing to me how clients of ALL ages are completely oblivious of their credit report and scores. Some have negative credit factors that should have been erased years ago, others are unaware they have been victims of identity theft, then there are those with recent negative credit information that could have been resolved and erased if they knew the proper steps. A poor credit report impacts your ability to obtain credit, obtain insurance, rent an apartment or get a job. If you wait until you begin working with a realtor to correct your credit issues, that dream home or apartment may be slip through your fingers.
Please note that if the following steps seem overwhelming, there are credit experts who can assist with your credit problems, innacuracies and low score. Contact me for a referral to such an expert.
Steps to take:
1. Get your free credit report. All consumers are allowed one free credit report every year from each of the three credit-reporting bureaus, Equifax, Experian and TransUnion, Go to AnnualCreditReport.com to request the free annual reports from each bureau. You can either request all three reports at once or spread them out over different times of the year.
2. Check for errors and omissions. Review your credit report for errors, . So it's very important to make sure the information is corrected if it's not."
Verify that your credit report doesn't shortchange your history. Don't see that gas credit card you paid off last year? Make a note to get it added.
3. If there's an error, gather documentation. This step is critical. Take the time to assemble all the information you'll need to prove your case, such as copies of canceled checks and creditor statements. For example, if the credit report shows you still owe money on a bill that has been paid in full, include the statement that documents the zero balance,
4. Put it in writing. Contact the bureau whose report you believe to be inaccurate, giving your name, Social Security number and date of birth, and recently used addresses.
Write as if you were writing to a potential employer. Explain that you are disputing certain items, and give clear, factual reasons why. Include all the details of your case, such as account numbers, invoice numbers, check numbers and payment dates. Number your attachments to make it easy for the reader to find them. Make it clear what you want changed. Don't forget to sign your letter.
You can send your dispute to the credit-reporting bureau by snail mail or online. If you use regular mail, your letter should be sent by certified mail, with the return receipt add-on requested, so you can document that the bureau received the letter. Or you can register a dispute via the Internet and you should receive notice it is received. Include copies of the disputed charges and proof you've paid them, just as you did for the bureau.
5. Wait. Once the credit-reporting bureau receives your dispute, the investigation must be completed within 30 days. The bureau will notify the creditor initiating the report that it is investigating your dispute. If the creditor finds the information is inaccurate, it must notify all three credit-reporting bureaus so they can correct information in your file.
When the credit companies receives a disputee, original records are reviewd and verified, in which case the credit report should be updated accordingly.
6. Get your results. In all likelihood, the dispute will be settled in much less time than 30 days. In some cases within a week. If you've built a good case in your dispute , the credit-reporting bureau must remove the inaccurate information from your report.
However, if the decision doesn't go your way and the investigation does not confirm your side of the dispute, you have another option. "You can ask the credit-reporting agency to include a copy of the statement of dispute in your file, and that will go out with future credit reports," she says.
DISPUTING YOUR CREDIT REPORT
The best place to start the dispute process is on the credit-reporting bureau's website. Here is the current contact information for each of the three major credit-reporting bureaus:
- Equifax: Dispute online with Equifax
- Experian: Dispute online with Experian
- TransUnion: Dispute online with TransUnion
Info compile from MSN.COM
