How to Dispute Negative Items on Your Credit Report

If you get a loan from an institution and you default, the institution can report the matter to credit bureaus. Apart from loan defaulting, if you fail to pay your bills on time, the companies can report the issue to credit bureaus, and you will get poor ratings on your credit score.

 

The poor ratings will affect you because most areas where you will need financial assistance the matter will be taken into account. Some jobs will require you to have good credit records. You can end up failing to qualify for a job opportunity due to your poor credit history. Sometimes you may have good track records in settling your debts and paying bills on time, but a wrong record is entered on your credit report. You can look for ways of rectifying the situation.

Why should you dispute a negative item on your credit report?

  • The information affects your ability to access a loan at affordable interest rates
  • It affects major purchases such as buying a home or car
  • To safeguard against negative records, this can affect whether you can get insurance cover at reasonable premiums.
  • How to dispute negative items on your credit report

Request a fresh report directly from the credit bureaus

You may access a credit report from reseller or agents of the credit bureau. The report may have been mishandled which lead you to access negative items on your credit. To know whether the negative item exists on your credit report it is necessary for you to order the report from the credit bureaus directly so that you can be sure and make more steps toward correcting the problem.

Check the report for minor errorsĀ 

For you to know whether the credit report was directed to you wrongly or there is an identity theft which leads you to get negative records. You should study the credit report closely and take note of any errors which may have been there. You should check on details such as a negative court case which is indicated on the report, wrong address or even misspelling of your official names.

Mark up the credit report while highlighting the mistakes

While preparing to write a dispute, you should photocopy the report and highlight errors by underlining them. The process makes it easy for you to identify all mistakes and refer to them while making your story.

Write or type your dispute letter

You should write your dispute letter or type it manually. The highlights on the copy will make it easy for you to refer to different entries which you dispute. Explain various errors which may have been entered wrongly. There are some platforms which allow you to discuss the errors online, but you should go further and write a letter explaining all details you find wrong on your credit score.

Separate disputes into multiple letters

If you have several negative reports on your credit score, then you better dispute each of them in a different letter. It can be hectic, but remember your credit report is something that affects your finance hence it will change your life, you should always write all the letters and address to your credit bureau so that the errors can be corrected. It is also easy for you to have the errors corrected within a short period if each is addressed in a separate letter. Keep each letter simple while addressing your negative entries.

Include evidence.

There are different entries which may be entered. For example, you may have the report indicating that you defaulted a given loan, if you have letters of clearance from your lender, you can include the evidence. It is necessary to include all evidence you have at your disposal so that you can have the issue addressed within a short period.

Mail your dispute to the credit bureaus and the data furnisher

After you have written the dispute letter, you should send a copy to your credit bureau as well as the data furnisher. If you had taken a loan and repaid in time, but you discover the lender has furnished the credit bureau with wrong information, you should inform the lender about your dispute by writing as well as the credit bureau. It is necessary for you to inform the two parties because they work hand in hand for your credit score to be corrected.