Disputing Credit report really worth
The only way to protect yourself and your money are to stay on top of Big Brother. There are laws about what can appear on your credit report, and disputing any mistakes or miss reported items can double the rate your credit score rises, so you’ll achieve your financial goal much faster. Now the question is How to Dispute credit report successfully with all the CRA’S.
“Dispute any mistakes or misreported items – can boost your score”
Of course, disputing items on your credit report can be a bit daunting. There are two ways to do it. The first option is to use various methods to remove the negative items from your credit report by yourself (Do it yourself way).
The second option is to take professional help (credit Repair Services) to remove your negative from your credit report. Obviously, they will charge you but they can do it faster.
Step by step guide to dispute credit report with all the CRA’S
Before going to start disputing negative, it’s very important to take preparation for many other things. Here are all the things that you need to dispute a credit report. Find the whole process and the information step by step, just go through it.
Simple steps to follow when disputing negative:
- Understand the different types of FICO score and how they calculate
- Get your free Credit Report
- Make an itemized list of everything showing on the report
- Understand the Credit Scoring Model
- Major agency’s dispute departments contacts
- Simple Letter Format for Disputing items on your credit report
- Wait for 30 days to allow investigation but if necessary then follow up with the CRA’S in this waiting periods.
- Simple steps to follow when starting disputing (Pro Tips)
- Frequently asked questions (FAQ)
Understand different types of FICO score and How they calculate
Before understanding how to Dispute credit report, it is important to understand about the major CRA’S. There are mainly three major credit reporting agencies typically used by lenders – Equifax, Experian, and TransUnion. Each has different methods of determining your FICO score, and some present you with an educational credit score that differs from the actual FICO score your lender will pull.
Even official FICO scores are different, depending on the type of lender. Auto lenders use FICO Auto Scores, while credit card issuers use FICO Bankcard Scores and mortgage lenders use FICO Score 8.
To calculate your FICO rating, Equifax uses FICO Score 5, Experian uses Fico Score 2 and TransUnion uses FICO Score 4. Different lenders query different credit agencies. And they also report your payments and credit history to different agencies too. This means a debt, credit card, or default could show up on one, two, or all three of these agencies.
The only way to protect yourself and your money are to stay on top of Big Brother. All three agencies are required by federal law to provide you with a free annual credit report at your request once every 12 months. You also have 60 days to report a free copy if you’re denied credit, insurance, or employment based on bad credit.
How to get a free copy of your credit report
Get your free credit report and most important you need an itemized list of everything showing on the report. Then understand and analyze every item on your credit report carefully and take action accordingly.
All three agencies are required by federal law to provide you with a free annual credit report at your request once every 12 months. You also have 60 days to report a free copy if you’re denied credit, insurance, or employment based on bad credit. To order, visit annualcreditreport.com or call 1-877-322-8228.
Make an itemized list of everything showing on the reports
It’s not enough to just see your score. Also, before understanding how to dispute credit report, it is more important that you need an itemized list of everything showing on the reports. So that you can dispute any mistakes or misreported items. Keep in mind there are laws about what can appear on your credit report. Disputing these can double the rate your credit score rises, so you’ll achieve your goal of financial freedom much faster. Here are all the things that you need to dispute a credit report. Feel free to skip ahead if you already know this.
Two widely used credit scoring model – Just for your information
There is two widely used credit scoring model used in the USA, namely Fair Isaac Corp’s FICO and Vantage scoring model. Both models range between 300 and 850 – the higher the score, the better. The average FICO score in the United States is currently at an all-time high of 695. Although there is a different scoring model exists, which causes this figure fluctuate by a few points between 660 to 720.
Remember George Orwell’s dystopian novel 1984?
Big Brother was always watching the citizens of Oceania. Everything they did was monitored and judged harshly. The credit bureaus work very much like Big Brother, but you have the power to overcome and make your financial dreams come true.
We will also discuss how to dispute credit reports with the credit reporting agency using a simple letter format. Feel free to skip ahead if you already know this.
Major agency’s Dispute departments contacts
Of course, disputing items on your credit report can be a bit daunting. Here’s the contact information for each credit agency’s dispute departments:
Phone: (800) 864-2978
Mail: Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30374
Phone: (888) 397-3742
P.O. Box 4500
Allen, TX 75013
Phone: (800) 916-8800
Mail: TransUnion LLC
Consumer Dispute Center
P.O. Box 2000,
Chester, PA 19016
CFPB Simple Letter Format for Disputing
The Consumer Financial Protection Bureau has an easy format with phrasing that will force these agencies to respond. It recommends mailing a copy of any documentation you have, along with your credit report from the agency and a copy of your driver’s license or government-issued ID card.
Using this simple letter format, you’ll strike fear into the heart of Big Brother:
Be sure to request a receipt copy so you have proof that your mailing was received. Therefore this simple step is the secret to winning against collectors in court. So it can save you literally thousands of dollars or more on your debts.
This is especially necessary with Equifax, which is known to be the most difficult of the three agencies to deal with. So if these agencies don’t respond the way they’re required to by law (which we’ll discuss in more detail below), don’t hesitate to fight Big Brother with an even bigger partner – the government. Because the credit score Affects your life in many ways. What to do if the credit reporting agency refuses to fix your credit report. Read our blog what next if the dispute with CRA’S not solved within 30 days.
You can dispute the debts directly with your creditors and also can force-creditors-to-validate-debt. We will discuss the secret to defend yourself against collectors in another blog post. Get excited, because your life is about to change!
Simple steps to follow when starting disputing (Pro Tips)
1. Start with closed accounts
When disputing, start with closed accounts. If the account is open, there is a good chance that the creditor will verify it.
2. When disputing, Start with the oldest closed accounts first.
Many times, older accounts are sold or transferred multiple times, and the current debt collector does not have verification of the debt. Additionally, the equal credit opportunity Act only requires creditors to maintain written documentation for twenty-five months (see chapter 15).
3. Look for duplicates accounts
Many times, the original creditor will report the account as derogatory and sell it to a collection agency, which will also list it as derogatory. Many times, the same single negative account can be on your report as many as two or three times. This is illegal. Simply dispute the accounts with the credit bureaus and inform them that they are duplicate accounts.
4. Scrutinize your credit report
Scrutinize your credit report for the accounts that are past the statute of limitation (seven years). The seven-year period now starts 180 days after the account is the first delinquent. However, it used to be from the date of the last activity. Congress has changed this so that debt collectors cannot continue to re-age old accounts.
5. Check your credit report for any misinformation or identity theft and dispute it accordingly.
I can’t stress enough that you need to keep documentation of every and all contact with your creditors to be successful in court. That one trick will change your entire life and also help you to increase your credit score.
Of course, what credit you choose to accept can impact your life too. So that’s what we’ll talk about next.
Frequently asked questions (FAQ)
1. What to do if the credit bureau does not respond in 30 days?
Credit bureaus perform the most difficult task of collecting credit information. There is no perfect way of doing this because of human error, identity theft, or the unalterable nature of the credit reporting system. Due to this, bureaus may store ‘inaccurate, misleading, or biased information about millions of people on their credit reports. But what if the credit bureau does not respond in 30 days. Don’t worry, you can solve credit reporting complaints with all CRA’S.
In this regard, I am sharing with you practical experience. A few months back someone notices that three -fraud credit account is there in all three-credit report of a different credit agency. Then he contacted all three CRA’s and they inform him that if these accounts are not belonging to him then inform the police and make a report.
Then he collects the police report from the local station. And then sends one copy of it to all the CRA along with the statement that the fraud accounts are not him, they should block the accounts immediately. Because of his request, Experian and Transition removed all fraud accounts, but Equifax started the “dispute” process.
2. What to do if the complaint is not solved with Equifax?
If your complaint is not solved with Equifax then what can you do? What if the credit bureau does not respond in 30 days. Here is another example of such kind of problem that I am going to share with you. Someone from Georgia sent a statement and police report to Equifax one month before. However, what happened to him after one month? Please stick to the context I am describing to you the full incident.
After one month, the dispute was complete and all 3-fraud accounts came back as belonging to him, which is a lie. The creditors are B.O.A, Capital One, and Macy’s. Then he filed a complaint with the Consumer Finance Protection Bureau (CFPB) against Equifax that initiate another dispute. After this, he has to wait for another 15 days for the outcome of his complaint to CFPB according to the CFPB guideline.
3. What to do When CFPB is not able to give the result?
If the Consumer Finance and Protection Bureau (CFPB) does not give you the result (They usually do in this case). Then sending EQ and ITS (Intent to sue) letter should be your next move is going to be, at this point you need to wait for the CFPB to complete. Normally it had great success going the CFPB route. This is the way you exactly solve credit reporting complaints with all CRA’S.
Erroneous items on credit card reports often go unchallenged. Even though the FTC reports that 79 percent of consumer who disputed credit report errors was successful in removing them. Monitoring your credit score at a regular interval can be a good way to catch identity fraud.
If you invest a little time to overcome the hurdles put in place by creditors. Then you’ll transcend achieve your credit score and get the life of your dreams. This is how you could increase your credit score. More detailed advice is available on the