Credit Report Dispute

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The credit report dispute process may be easier than you think. For one thing, it is a very inexpensive proposition; you can get copies of your credit reports for free, once a year. Taking advantage of this free process is something you have to do so you are not unpleasantly surprised during a major purchase attempt.

There are three major credit reporting agencies that creditors are accountable to: Experian, Equifax and TransUnion. If you go to annualcreditreport.com, you can order free copies from all three right on one site. You’ll need all three because not every creditor reports to the same agencies, so while you might look good on one report, you might have problems on another.

Those problems may be something you can clear up yourself. First, make sure everything that has been charged to your accounts is actually something you authorized. If there are any discrepancies, highlight them and check the rest of the report for other errors, including items that were paid and not noted as “closed.” Also, highlight anything that is older than seven years, because those ...
... items must be legally removed after that time (except for bankruptcy filings, which take ten years to come off). Take note of anything that has the wrong amount paid, or extra charges that credit card companies might have attached to your account without your knowledge.

After you’ve gone over everything, find any supporting documentation you can to prove that you either paid, or something is outdated. Then, use a site like CreditElves.com for a sample letter to customize and send to the reporting agencies. The letter will include your account number, a copy of your credit report with the disputed item(s), copies of any supporting documents you might have, and an explanation of why you feel the item is erroneous.

The credit report dispute process is then in the hands of the credit reporting agency, who must make a decision and give it to you in writing within 30 days. Note that Equifax and TransUnion allow disputes by mail; Experian requires that you file your dispute process online. For all processes, you will need to supply your credit report identification number that comes on your credit report.

Once the credit agency or agencies have let you know what their findings are, they have to let the original creditor know, and the other credit reporting agencies. If it is in your favor, you need to make sure that the item has indeed come off your report by ordering another (free) one from the reporting agencies. If they have still not removed the disputed items, be sure to follow-up by mail and request that they do so immediately.

CreditElves’ website is filled with handy tips on how to take care of the credit report dispute process, and letter templates that make it all easier. When you have taken care of this yourself, you not only get the satisfaction of being proactive with your finances, but you will be a better credit risk for any big purchases you might wish to make in the future.