Your credit score is an important piece of personal information that follows you around wherever you go. When you apply for a credit card or a loan, your credit score will come into effect and will determine whether or not you are approved and even how high your interest rate will be. So after receiving your credit report and corresponding credit score, if you believe your score is too low or if you find errors on the report, it’s important for you to dispute them immediately and get them corrected as soon as possible. We included a step by step guide to disputing your credit score below
Let’s start from the very beginning. In order to dispute your credit score, you first need to acquire a copy of your credit report from all three of the major credit bureaus: Equifax, Experian, and TransUnion. Then, go through your report and look for any errors. Even errors regarding your credit limit can adversely affect your score, so be certain to really scrutinize every detail of the report. If you do find errors, make note of them so you can write a letter to the credit bureau.
Writing a Letter
When you write a letter to the credit bureau, be calm and professional when describing the mistakes that you found. Do not be abusive or accusatory. Rather, state the problem and request an investigation into the mistake. Be certain to include the date on the letter and to make a copy of the letter.
Allowing Time for Investigation
After receiving your letter, the credit bureaus have 30 days to investigate the mistake. Do not contact the credit bureau during this time. After the 30 days is complete, however, you should send a follow up letter if you have not heard from the credit bureau. That way, you can make certain the mistakes on the credit report are properly cleared up.
Adding Notes to Your Credit Report
After the credit bureau completes its investigation, it may determine that the credit report is correct. If this happens and you still dispute some of the information on the report, you have the right to add a note to your credit report. With your note, you can explain your situation and why the negative mark was added to your report. While some lenders will not look at these notes, many will and they just might take it into consideration when determining whether or not they will consider you for a new loan as well as the interest rate on that loan. So, while the note won’t change your credit score, it could have an impact when new lenders are considering your credit-worthiness.
While it may seem like a hassle to dispute errors on your credit report or to try to improve your credit score, the time spent is well worth it and could potentially save you thousands of dollars. In fact, even if you think your credit score seems to be fine, you should take advantage of your right to a free credit report every year, looking over it closely to make certain it’s error free. Make examining your credit report from all 3 credit bureaus one of your annual financial “house cleanings”.
Related Posts:
- Company Credit Card Payments Effecting Your Personal Credit Score? - A 2009 survey from RPMG Research Corporation demonstrated that more than one-third of the firms making use of corporate and business credit...
- Don’t Apply for Credit Without Checking Your Credit Score - Every day consumers across America receive credit card promotional offers that seem to be a great deal. They promote low interest rates...
- Avoiding The Very Biggest Credit Score Mistakes - Making a few errors on your credit can damage your rating more quickly that you think. Even a single late payment can...
- Disputing a Credit Card Purchase - Many people don’t realize it, but there are actually times when you can withhold payment on your credit card. I’m not talking about...