Common Mistakes to Avoid When Filing a Credit Dispute
When filing a credit dispute there are a few mistakes that people commonly make. These can stall the process and if done incorrectly, can end up hurting you more than helping.
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Not all information can be disputed
Only information that is inaccurate, untimely, misleading, incomplete, ambiguous, unverifiable, biased or unclear can be challenged. Anything that is accurate, even though it may be negative, cannot be formally challenged with the credit bureaus.
If the debt is valid, then you may want to consider approaching the collection agency with a pay for delete letter. This is a negotiation tool that may be useful if your credit reporting time limit is years away since negative credit items aren’t automatically removed from your record when you pay them off.
Choosing to challenge online or by phone
Going through the credit bureau’s online dispute system is convenient and fast. Credit bureaus may even encourage you to challenge credit errors online, but that’s because they are the ones who benefit. In reality, it is best to do everything on paper so that you have a written record.
The space provided to state your claim typically only allows you to make a brief summary. It’s better to supply a full explanation and supporting evidence, especially if you later need to take the credit bureau to court for not properly investigating your case. If you don’t provide enough information for them to examine your case, the credit bureau can claim that they didn’t have enough evidence to go on.
Although you can attach evidence to your online dispute, your best bet is to have a paper trail. This means mailing a detailed letter via certified mail, attaching evidence proving the mistake, and making copies for your records. This makes it more difficult for the credit bureau to claim they didn’t have enough information to investigate.
Credit Disputes and Your Credit Score
It is important to challenge questionable negative information on your credit reports as this information can negatively impact your credit score. It is best to have your credit reports as accurate as possible before applying for a mortgage, car loan, insurance or even a job.
A lower credit score resulting from questionable negative information on your credit report can unfairly prevent you from qualifying for a loan, keep you from getting approved for a low-interest rate, cause your car insurance premiums to increase, or come between you and a new job.
Because of the difficulties many people run into when disputing questionable items with the credit bureaus, thousands have utilized US Allied Financial, a trusted leader in credit repair. US Allied Financial provides credit bureau disputes as well as a number of other credit repair services designed to help you make the most of your credit.