How to Dispute and Repair Your Credit Report in 3 Steps
Credit report repair, no doubt, probably ranks somewhere between cleaning out the gutters and visiting the dentist on your fun meter. Frankly, if it didn't I'd be worried. But truth be told, without a solid credit rating you are pretty much sunk. Your credit history is used by everyone from respective employers to mortgage lenders to determine whether or not you qualify for credit.
Not only is your credit record used to determine if you qualify for credit, but it is also used to determine the terms that will be granted. For instance, the interest rates you pay for car loan are directly linked to how strong your credit is, as well as how much credit will be extended to you. So you see, it really is in your best interest to have your credit report in line and showing you in the best possible light.
Credit Report Repair - The First Step
The very first thing you want to do is carefully go over all three credit bureau reports to find errors and inaccuracies. The three credit bureaus are TransUnion, Experian and Equifax and they are required by law to investigate all reasonable disputes that they receive within 30 days.
Gather together any and all documentation that you can find to help prove your case. If you can't find the documents to support your case then contact the bank or lending institution that you did business with and request that they investigate any unauthorized or errant information recorded for that account.
Credit Report Repair - The Second Step
Once all the relevant information has been collected documenting the errors or inaccuracies, contact the credit bureaus and dispute it. To do this you will:
- Make a copy of your credit report
- Clearly note the items in dispute
- Give an explanation of why they are inaccurate
- Request the credit bureau correct or remove the item in question
You will now make copies of all your documents that support your case and send them, along with your credit report highlighting the errors, by way of certified mail to the credit bureau. Make sure you have copies of all the information that you send in. The credit bureau is then obligated to investigate your claim. When the investigation is completed you will receive written notification of their findings.
If your dispute is proven valid the credit bureau will remove or correct the errant information. They will also give a copy of your credit report and provide you with all the contact information of the entity that provided the inaccurate information. You can also direct the credit bureau to send correction notices to anyone that requested your credit report within the past 6 months. For job hunters, you can request a corrected copy be sent to anyone that has ordered your credit report over the past 2 years.
If your dispute is not resolved to your satisfaction, you can request that a statement of dispute be attached to your file. This may or may not help you secure credit in the future but it certainly won't hurt.
Credit Report Repair - The Third Step
During the time it takes for the credit bureau to investigate your dispute, make sure you contact whomever entered the information in question (credit card issuer, mortgage company, bank, etc). The credit bureau will also contact them during the course of their investigation, but by all means, get involved in the process and do whatever it takes to repair the problem.
You can do so by sending them the exact same information that you sent the credit bureau. Ask them to investigate your dispute as well. A double-barreled attack consisting of you and the the credit bureau will likely expedite the investigation. Be pro-active and let them know you mean business. You know how administrators can be. Sometimes they need a little kick in the pants.
