One thing a lot of people want to know is how to fight a dispute they have with the credit bureau. This can be a tricky issue. How does the system work?
Basically, each of the finance companies you work with reports to either Equifax, Expedia, or TransUnion. But very few report to all three. And because of this, you never know where an error will occur because your report might be flawless with one bureau and not with another. It just depends on which merchant made the mistake. And mistakes happen all the time.
More than 50% of people have one or more errors on their report, which could easily affect them when they apply for their next loan, mortgage, or credit card.
Don’t the bureaus check for accuracy from time to time? No, they don’t. These glitches will never get repaired unless you do something about them.
So how do you file a dispute? Here are the three steps you need to take:
#1) Call up the finance company the mistake occurred with
Verify with them that you made the payment on time. If they confirm it, you need to file your dispute. But will the credit bureaus even pay attention to you? Yes, because they are required by law to look into every claim filed with them.
How long will it take? They have to get in touch with the merchant in five days or less and reach their decision within thirty days.
#2) Send the bureau a letter.
Tell them exactly which transaction you have an issue with. Don’t be vague.
What do you say? There are plenty of dispute letters online you can use for reference. But essentially, you just want to let them know that you found a mistake(s) on your report and detail the mistake.
Make sure to include documents that verify your claim, such as cashed checks, etc. This makes it much more likely to be resolved.
#3) Send it via certified mail
Then write a note somewhere to remind yourself to check in on them after thirty days.
What if they exceed this time limit?
Then call them up and see what’s going on. After all, you have a legal right to an answer within this time, and you need to hold them to it.
The bottom line: you need to be proactive about your credit score. If you aren’t, then you could easily have mistakes that negatively affect you for seven years down the road. And it would be smart to check in with your report every few months to verify everything is still correct. Almost nobody does this, but making this a habit is smart. Just make the date on your calendar three months from now, so you don’t forget.
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