How to Dispute Credit Reports

How to Dispute Credit Reports

Credit reports are made by three companies but use the same information. Your credit report is the foundation of your financial credibility. Every earning, loan or purchase that you make impacts your credit standing. The credit report takes note of these financial decisions and represents your standing with a credit rating. The higher the credit rating is, the better off you are financially. 

 

Unfortunately, there are times when there is a mistake in the data entered. It may be a missing payment or the inclusion of a non-existent transaction. Whatever the reason, it may cause the misreporting of your credit rating.

What is a credit report dispute and why would you need to file one?

A credit report dispute aims to correct any errors in a credit report. There is a standard procedure where a person’s financial transactions for any discrepancy, and corrected if necessary. 

 

Correcting a wrong report can be a big deal for the person concerned. Due to a low credit rating, a personal loan may not be released or released with a higher interest. Some loans are disapproved because of the lower rating. These can influence a person’s finances and may also ruin his reputation and credibility.

How to dispute inaccurate information on your credit report

The first step to disputing a credit report is to gather all the financial statements included in the report. These include credit statements, invoices, receipts and bank statements. The person involved checks these documents for completeness as incontrovertible evidence in the dispute. 

After a review of the financial documents, the person involved has to contact the credit agency and fill up any forms necessary for the dispute. The dispute takes the form of a request for a review of the financial sources. At the same time, the person has to contact the financial furnisher that provided the wrong information. 

He sends a letter to the furnisher informing them of the mistake with a copy of the document with the correct information. In some instances, the mistake may be rectified immediately, but it may not automatically update the credit bureau. 

If the furnisher finds that they have made a mistake, they inform the credit bureau of the corrected information. The credit bureau can then update their records and restore your credit rating.


Conclusion

A dispute is a straightforward process where personal financial information is corrected, and the credit rating is updated. Unless corrected, errors will remain on record and may harm a person’s future financial transactions.

If you need help in filing a dispute to improve your credit, get in touch with us at The Oasis Firm today!

Sources:

https://www.thebalance.com/who-are-the-three-major-credit-bureaus-960416

https://www.nerdwallet.com/article/finance/dispute-credit-report

https://www.transunion.com/blog/credit-advice/how-long-does-it-take-for-a-credit-report-to-update

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