Your credit report says everything about your finances. But what do you need to do if you find an error on your credit report?
No need to panic, all you have to do is learn more about the situation and practice your rights. You can easily dispute errors on your credit report or you can hire professionals to do it for you.
Remember that errors on credit reports are fairly common. The good thing is that credit bureaus are required by law to issue accurate credit reports and they are required to fix them if there are errors on the report.
Anatomy Of Credit Report Errors
There are several possible causes of errors on your credit report.
* Mixed Files – If you have a common name, files of other people can get mixed up with yours and it is a messy picture to look at. Imagine all the John Smiths in the United States that only differ in their middle names or middle initials.
* Identity Theft – Another possibility is identity theft. When someone steals your Social Security Number, they can use your name to open certain accounts and it will be reflected on your credit report.
* Furnisher Error – There are three parties involved in completing the data of for your credit report: You, the credit bureaus, and the data furnishers. The last one includes lenders, banks, rental companies, among others who supply data to the credit bureaus. The data furnishers can end up reporting inaccuracies in terms of your payment or collection accounts.
*Re-Aging Debt – Certain records are meant to disappear when they “mature” but there are also information that goes through re-aging when a debt goes to a third-party collector. When this happens, the records stays on your credit report longer than it should.
How To Dispute Erroneous Entries On Your Credit Report
You can send requests to credit bureaus via mail or via the online portals of the credit bureaus.
If you will do it by mail, you need to write a dispute letter to point out the error made. You need to attach copies of supporting documents to prove that the entry should be removed from your credit report.
When you write a dispute letter, you need to be very clear, specific, and concise. You need to pinpoint the inaccuracy that the credit bureau needs to check and address. You don’t have to quote existing laws as writing the credit bureau is sufficient enough to start a dispute. Don’t forget to include your return address so they can send the results to you.
Those who opt to send it via the credit bureaus online portal, there’s no need to send a dispute letter. You just need to enter a brief explanation about the specific errors on your credit report and then upload supporting documents.
Whichever method you choose, the credit bureau will notify you of the results of their investigation. Remember that you should include as much evidence you have to prove that the erroneous entry should be removed.
Likewise, you can tap the help of credit repair services to dispute such errors. Learn more about this at TheCreditPros.com.
If you want to learn more about credit repair and what you can do to improve your credit score, visit thecreditpros.com today.