| Dispute Credit Report Errors (credit counseling)
|
| ACS provides free articles on credit counseling, debt consolidation loans and refinance mortgage. |
Dispute Credit Report Errors
[ Bookmark this page! ] [ get HTML Version ]
Tackle Credit Repair
Though you're in debt at this time, if you dig down deep and decide to fight for your financial freedom back, you can surely find a solution. Credit repair becomes a necessity in some of our lives at times since we do not always have great debt management skills going into adulthood.
The creditors that have lent us money are doing so in good faith and under the assumption that they will... Read credit counseling article
Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans to you - a loan based on your equity in your home even if your credit has slipped or isn't as perfect as it could be. By taking out a bad credit home mortgage or home equity loan, you can consolidate a... Read article
Dispute Credit Report Errors
Your credit report is a type of consumer report and contains information about where you work, live, what you own and how you pay your bills. It also may show whether you've been sued or arrested or have filed for bankruptcy. Companies called consumer reporting agencies (CRAs) or credit bureaus compile and sell your credit report to businesses. Because businesses use this information to evaluate your applications for credit, insurance, employment, and other purposes allowed by the Fair Credit Reporting Act (FCRA), it's important that the information in your report is complete and accurate.
Estimates indicate that as many as three forths of all consumer reports are inaccurate or have information that should have been removed. Chances are your report has something that is inaccurate of outdated.
Logic would suggest that you periodically review your credit report for inaccuracies or omissions. This could be especially important if you're considering making a major purchase, such as buying a home or a new car.
Checking in advance on the accuracy of information in your credit file could speed the credit-granting process.
Getting Your Credit Report
If you've been denied credit, insurance, or employment because of information supplied by a CRA, the FCRA says the company you applied to must give you the CRA's name, address, and telephone number. If you contact the agency for a copy of your report within 60 days of receiving a denial notice, the report is free. In addition, you're entitled to one free copy of your report a year if you can prove that (1) you're unemployed and plan to look for a job within 60 days, (2) you're on welfare, or (3) your report is inaccurate because of fraud. Otherwise, a CRA may charge you up to $9.00 for a copy of your report.
If you simply want a copy of your report, call the CRAs listed in the Yellow Pages under "credit" or "credit rating and reporting." Call each credit bureau listed since more than one agency may have a file on you, some with different information. The three major national credit bureaus are:
Equifax
P.O. Box 740241
Atlanta, GA 30374-0241
(800) 685-1111
Experian
P.O. Box 2104
Allen, TX 75013
(888) EXPERIAN (888-397-3742)
Trans Union
P.O. Box 1000
Chester, PA 19022
(800) 916-8800
Correcting Errors
Under the FCRA, both the CRA and the organization that provided the information to the CRA, such as a bank or credit card company, have responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under the law, contact both the CRA and the information provider.
First, tell the CRA in writing what information you believe is inaccurate. Include copies (NOT originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report with the items in question circled. Your letter may look something like the sample below. Send your letter by certified mail, return receipt requested, so you can document what the CRA received. Keep copies of your dispute letter and enclosures.
CRAs must reinvestigate the items in question - usually within 30 days - unless they consider your dispute frivolous.
Now we get to the good part. If you have several items to dispute and submit them at the same time the CRA will almost always consider your dispute frivolous. Sorry, that's just the way it is. Your best bet is to dispute one or two items at a time. Send your letter, wait two weeks, send the next letter and so on. Best idea is to find something wrong with what is being reported. Check the details. Are the dates correct, the amount correct, the payments correct? Do you even owe the debt? Was it paid off?
The CRA must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file.
- Disputed information that cannot be verified must be deleted from your file.
- If your report contains erroneous information, the CRA must correct it.
- If an item is incomplete, the CRA must complete it. For example, if your file showed that you were late making payments, but failed to show that you were no longer delinquent, the CRA must show that you're current.
- If your file shows an account that belongs only to another person, the CRA must delete it.
Now for the REAL story. The information provider will almost always responds saying they investigated and the debt is valid. That's all it takes for the CRA to substantiate the debt and tell you to take a hike. Now think about it, you have a debt that is not yours and you go to the CRA to disputed it. They send a letter and to the no good company reporting you as a deadbeat and asked them to substantiate a non-existent debt. To add insult to injury that no good company tells the CRA it's good debt and your SOL.
When the reinvestigation is complete, the CRA must give you the written results and a free copy of your report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the provider.
Also, if you request, the CRA must send notices of corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the CRA to include your statement of the dispute in your file and in future reports.
Second, in addition to writing to the CRA, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider then reports the item to any CRA, it must include a notice of your dispute. In addition, if you are correct - that is, if the disputed information is not accurate - the information provider may not use it again.
Personally, after helping dozens of people clear negative, incorrect information from their credit reports I can tell in option 1 is a necessary step but for the most part a useless step. Going right to the creditor and documenting the attempt is by far the best way to remove the inaccurate information on your credit reports. After disputing the information to the creditor, documenting the attempt, and documenting the non response of the creditor you have irrefutable evidence to present to the credit bureau. According to the federal law they have no choice but to remove the incomplete or inaccurate information
Accurate Negative Information
When negative information in your report is accurate, only the passage of time can assure its removal. Accurate negative information can generally stay on your report for 7 years. There are certain exceptions:
- Information about criminal convictions may be reported without any time limitation.
- Bankruptcy information may be reported for 10 years.
- Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
- Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
- Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.
- Adding Accounts to Your File
Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank credit card accounts will be included in your file, not all creditors supply information to CRAs: Some travel, entertainment, gasoline card companies, local retailers, and credit unions are among those creditors that don't.
If you've been told you were denied credit because of an "insufficient credit file" or "no credit file" and you have accounts with creditors that don't appear in your credit file, ask the CRA to add this information to future reports. Although they are not required to do so, many CRAs will add verifiable accounts for a fee. You should, however, understand that if these creditors do not report to the CRA on a regular basis, these added items will not be updated in your file.
$$$$$$$$$$$$$$$$$$$$$$$$$$$
Sample Dispute Letter
Date
Your Name
Your Address
Your City, State, Zip Code
Complaint Department Name of Credit Reporting Agency
Address
City, State, Zip Code
Dear Sir or Madam:
I am writing to dispute the following information in my file. The items I dispute are also encircled on the attached copy of the report I received. (Identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.)
This item is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.
Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please reinvestigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.
Sincerely,
Your name
Enclosures: (List what you are enclosing)
Bookmark this page | Search this site | E-mail to a Friend
Improve Credit Score The Best Way
Less than 6% of the population in the United States can brag about having FICO credit scores above 800. It's an elite club.
The benefit of having a score above 800 is that you're guaranteed credit approval with the best terms from the best lenders. No hassles. Only the red carpet treatment.
But do you really need to have FICO credit scores that are 800 or higher to accomplish your goals? I don't think so. Any score over 740 is worthy of celebration.
You may have scores in the high 500's or low 600's, and you may think "740, yeah right!" But if you follow the steps I'm about to outline, you will see your scores approach 740 and you will become much more attractive to lenders.
So how do you go about building your FICO scores to 740?
I can't tell you specifically, because I don't know what your negative reason codes are. You see, the secret to increasing your FICO credit scores is for you to understand your negative reason codes.
Negative reason codes are a boring topic to people with good credit.
But to people that had credit challenges in the past, it can mean the difference between continuing to be denied credit or hearing those wonderful words, "You're approved."
Your negative reason codes are the keys to unlock credit doors that up until now have been slammed in your face. The great thing about negative reason codes is there is no guesswork involved. Your negative reason codes will tell you everything you need to do to accomplish your goals of buying that new car you always wanted or getting approved for that mortgage with a single digit interest rate and no money down.
By understanding and acting on your negative reason codes lenders will no longer treat you like a second-class citizen. No more "special finance" departments. No more high-interest finance companies. You can look for an apartment or begin house shopping with confidence.
Powerful stuff. And it's easier than you think.
First of all, negative reason codes are two digit numbers that accompany each of your credit scores.
When you purchase your FICO scores you should automatically receive four negative reason codes for each score (from each credit reporting agency), giving you a total of twelve codes.
...as long as you purchase your scores and codes through the right source.
The best place to purchase your scores and twelve negative reason codes is NOT myfico.com. You don't receive all twelve negative reason codes from myfico.com.
Technically, you receive four negative reason codes and eight "positive" reason codes. Unfortunately the positive reason codes are absolutely no help to someone with low credit scores.
I was so frustrated that Fair Isaac didn't give all twelve negative reason codes that I begged Fair Isaac to make the real negative reason codes available to the public. So after several months of me prodding them, they finally gave in and created www.myfico.com/12 for us. Through this site you get everything lenders see! Cool.
Mortgage lenders are another good source to get your scores and negative reason codes when you apply for a mortgage. Just be sure your mortgage company follows the new FACT Act and shares your scores and codes with you. It's mandatory now.
Alright. So now you know what negative reason codes are and how to get them.
How do you know what these codes mean?
The definition of each code is explained with your credit scores.
For instance, a negative reason code "38" will be defined as: "serious delinquency, and derogatory public record or collection filed." A negative reason code "08" is defined as: "too many inquiries last 12 months." So your negative reason codes tell you exactly why your scores aren't higher.
Unfortunately, the definitions provided by the credit reporting agencies are not as detailed as I would like. That's because they were designed to help lenders explain why you were declined...not designed to be shared with consumers.
This should help.
I was fed up with how difficult it was to decipher negative reason codes. (Boy, I'm fed up a lot, aren't I?) So one day I sat down and read every single reason code, then rewrote it in plain English so I could understand it! Imagine how much easier it would be for you to understand your negative reason codes if you had this plain English translation for yourself?
I have good news for you. You can get your own free copy of the Negative Reason Code Decoder ReportTM now by going to:
http://www.lifeafterbankruptcy.com/links/CodeReport.pdf
Now you know all the negative reason codes...in plain English.
Joining the 740+ Club is easy when you have a goal and a clear game plan to make it happen based on your negative reason codes.
Your negative reason codes are the critical keys to unlock credit doors that up until now have been slammed in your face.
Stephen Snyder is the founder and president of the After Bankruptcy Foundation a non-profit organization that provides free bankruptcy information and recovery steps. Stephen is also an author, speaker and leading authority on bankruptcy recovery and credit scoring.
Top rated articles for credit counseling
1. Credit Counseling Organizations - The Good and the Ugly
You can find credit counseling organizations by using a search engine such as Google. Go to google.com and type in credit counseling. Google will more than likely return 20 or more pages of credit cou... Read credit counseling article
2. Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans t... Read article
3. Build Credit With Good Money Management Skills
You should consider how to build credit using good money management skills today. Your first step is to keep a record of outgoings and use a strict budget that you can stick to. Bankruptcy and debt co... Read credit counseling article
4. Credit counseling - Recovering from Bad Credit
I have seen the advertisements and cringe - "Let us fix your damaged credit", "Don't file bankruptcy, let us help". I am sure you have not only seen them but if you have been in financial trouble you ... Read credit counseling article
5. Mortgage Consultant Can Boost Your Credit Score
Consumers interested in purchasing or refinancing a home will pay an interest rate based on current market conditions and their ability to pay back the loan. The borrower's income and debt ratios are ... Read credit counseling article
6. Free Credit Report
Obtaining an annual free credit report can keep you on top of your credit and allows you to check if there are any errors on your credit report. By receiving a credit report annually you can keep one ... Read credit counseling article
7. Credit Rating
People seldom know why they have been turned down for credit. In fact, it often comes as a shock. Some people don't find out till they are standing in a shop with a store card application in their han... Read credit counseling article
8. Home Mortgage: Bad Credit Won't Rule Out a New Home
When you're looking for a way to afford your dream home, home mortgage bad credit options can offer a way to get you into the home that you want to buy. Not long ago, people with less than perfect cre... Read article
9. Erase Bad Credit With A Little Help
Everyone has a little trouble now and then. If your little trouble ended up recorded in your credit history, it may take a little effort to erase bad credit and get a clean start, but it's an effort w... Read article
10. Nonprofit Credit Counseling Agencies
Consumers that deal with credit card debt sometimes find it necessary to a get a little outside help. Consumer credit counseling agencies are a great, free resource for consumers needing a little extr... Read credit counseling article
Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,
Dispute Credit Report Errors
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,
Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.
Add website or submit URL link of your site to 1000 free directory