Dispute Credit
After careful review of your credit reports and financial records you may find it necessary to dispute credit entries on your credit report. An effective credit dispute begins with a credit dispute plan which should be developed in steps. Set goals, gather financial records, prepare written correspondence and keep records of the communication.
First, take the time to decide what you plan to accomplish. Are you purchasing a home? Does your lender require a particular credit score? If this is the case, and there are several questionable entries on a credit report it is important to prioritize the credit disputes giving special consideration to the credit dispute that provides the most upside to the credit score. In other words, shotgunning credit disputes might not be the best approach.
A credit report may have several, questionable, erroneous trade lines dating as far back as a decade or more. In the case, a $10 collection account from yesterday is much more important, from a credit score perspective, than a $500 collection account 3 years old. Prioritizing your credit disputes is important to a successful credit dispute plan.
Once you have your credit dispute plan and you have gathered your financial records the next step is to contact the credit reporting agency in writing to request a reinvestigation of the disputed credit line. Based on your contact, the credit reporting agency is required to respond within a reasonable time frame. This step can be frustrating and confusing as it is not uncommon for different credit reporting agencies to treat your credit dispute differently. One credit reporting agency might delete the questionable account while another might respond refusing to reinvestigate. The key is to keep detailed records and to evaluate and adjust your strategy depending on your dispute results. If you find your credit dispute is not being handled as you expect by the credit reporting agency the next step is to escalate your dispute directly with the creditor.
