Disputing Discrepancies on Your Credit Report?

5 Ways To Dispute Discrepancies to Your Credit Score

A person’s credit score indicates how credit-worthy and financially responsible they really are.

A credit report is usually sourced from the nation’s three major credit reporting agencies, which includes Experian, Equifax and TransUnion. However, the big three are not immune to errors and major flaws, and according to credit experts, these three agencies incur error rates ranging from 20 to 30 percent, although some of the errors may be as simple as reporting the wrong month of a delinquent account. Nevertheless, any simple credit report errors may still have a damaging on the person’s credit score, which can result in the individual getting rejected for a much-needed credit line. Here are five ways for disputing discrepancies in your credit report.

Order a Copy Of Your Credit Report From The Big 3 Credit Agencies

The first thing to do is to order a copy of your credit report directly from each, or any of the three major credit agencies. Don’t get your credit report from third-party agencies, because chances are you could be disputing errors or flaws that don’t even exist. According to the US Fair Credit Reporting Act (FCRA), the major credit agencies are responsible for correcting or reducing any flaws and errors in their credit reports. The FCRA therefore, enables you to directly contact these credit reporting agencies, and formally relay your disputes or complaints.

For more detailed information see “The Art Of Damaged Credit Repair.”

Make Sure Each Report Is Not Past The 7-Year Limit

Once you get a copy of your credit report from the major credit agencies, compare each of the reports, and ensure that these are not past the seven year limit for reporting of any errors or negative information. Also determine if the status and delinquency dates are not incorrectly noted.

How To Dispute Any Errors You Find

Once you personally find any discrepancies or flaws, you can dispute these through filing your complaint online, as well as by writing a letter to the specified credit agency. While sending your dispute on the Internet may be much faster, it only offers you limited options to explain your reasons. However, if you write a letter, make sure you limit it to around 100 to 150 characters, or 30 words, to directly state your case. To file your dispute online, visit the agency’s Web site, and look for the “Dispute” option. Enter your identifying information, and proceed to state the dispute. In sending disputes by mail, find the agency’s official mailing address, which is usually located near the end of your report, and include your name and address, report number, as well as the account numbers you’re disputing.

Once you receive a copy of your credit report from any agency, the agency is normally given 45 days to send the results of your dispute. But if you paid for your report, the agency will usually deliver this to you in around 30 days. Once you spot any errors or inconsistencies in your credit report, it’s important that you question and dispute all those inaccuracies, and never assume that something is correct, just because it’s reported by one of the major credit reporting agencies.

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Building Your Credit Score?

5 Ways To Build Your Credit Score

Whenever you wish to get a loan, you need to know something about your credit score. A credit score is a number that creditors look at to determine your viability to get credit. A bad credit score can keep you from financing your kid’s education, or from buying a new home. Therefore, it’s very important to build a good credit history. Her are five innovative ways for building-up your credit score.

Get a Credit Card, And Pay Your Balance On Time

To get started in building a nice credit score, get a credit card, but remember to only start out with  one credit card for the moment. Remember that the more credit cards you have, the more debt you’ll end up with. You need to be responsible with one credit, before you insist on applying for a second or third credit card. In addition, remember to pay your card’s balance on time. If you only charge your card for the items that you can afford to pay, then you won’t need to wrangle with any future debt problems By paying your credit card’s balance every month, this would indicate that you’re capable of paying your bills, and will send a positive signal to most creditors and lenders.

Don’t Ask For A Higher Limit From Your Credit Card Company

If you have a credit card, don’t be tempted to call your credit card company and ask for a higher limit, because this can help ruin your credit score. Next, don’t open any extra credit card accounts, because by having an extra credit card, or by canceling the other one, you can do major damage to your credit history. Also ensure that you don’t transfer your balance from a card that offers high interest, to a card that offers a lower interest rate.

Pay-Off A Sizable Amount of Your Current Debts

In order to build a good credit score, pay-off a sizable portion of your current debt load, since the more available credit you have, the more will your credit rating improve. Also have a considerable savings and checking account, as well as learn to regulate it too. Your creditors will view a well-managed bank account as a sign of stability.

Add Other Small Forms Of Credit

Once you’ve paid-off a large portion of your current debts, add other forms of credit, like get a small mobile phone contract, and pay it off every month. Small bills like mobile phone monthly payments may help to enhance your credit rating, and will also indicate that you’re well-rounded when it comes to handling different forms of credit.

Dispute Any Errors In Your Credit Report

If you still haven’t seen an exact copy of your actual credit history, get a copy now and analyze it properly. Log on to sites like annualcreditreport.com and others, and get a copy from the credit bureaus too. Once you get a copy of your credit report, check out each of the details, and quickly highlight, as well as dispute any errors or numerical flaws. An incorrect report can actually deduct as much as 100 points from your credit score.

Individuals with good credit scores are often called “prime borrowers”, and these people are more likely to get special interest rates and other rewards from creditors. However, those who have poor credit scores are often viewed by lenders as truly high-risk clients.

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The Art of Damaged Credit Repair

There are a few simple steps to follow to get your damaged credit repaired. Your credit may have been damaged for different reasons.

The first may be something came up in your personal life like a loss of a job or unexpected medical expenses. These unexpected things can cause great pain in your life and a person may resort to using credit cards to survive and pay monthly expenses. You later find out when the bill comes you are playing catch up each month so it becomes a vicious circle that drives you deeper and deeper into debt.

The second situation that may arise is you become a victim of identity theft. Some one robs your identity opening accounts in your name. They charge up a bunch of items never intending on paying the bill. This leaves you in a situation where you have to prove it was not your charges or accounts.

The best way to do damaged credit repair is by doing it yourself if you have the time. In my opinion this is something a person should make time for just like paying your financial responsibilities each month takes time.

Here are the simple steps to take:

  1. Mark at date on your calender to yearly check you credit report. Just like you would for and important birthday or anniversary. Consider it a financial anniversary.
  2. Go to the website http://annualcreditreport.com to get a copy of your credit report for free. You do not need to worry about your credit scores at this point so I would not pay for them.
  3. Review the credit report from the three different credit bureaus (equifax, experian, transunion).
  4. If you find things that are incorrect you are able to dispute the item on the website. Each credit bureau will then check out the information to make sure it is correct. If it is incorrect they must remove it.
  5. Once everything is corrected you must now move on to paying off any collections or judgments that are not removed. The creditors are willing to negotiate a settlement most of the time to get the collection or judgment off of their books. If you enter into a settlement agreement make sure that you get it in writing that the debt is paid if full.
  6. Make sure to keep current on your debts. This will go along way to repairing you credit. You would be surprised how quickly this will raise your credit score.

If you find that you don’t have the time or feel you don’t want to attempt to do the credit repair yourself you can always hire out the process to a reputable company.

Previously published on http://ezinearticles.com