February 8, 2009

If you are trying to get a quick boost to your credit score, there is a simple method most people overlook.  Dispute errors on your credit report. BankRate.com says “70 percent of credit reports contain serious errors that might cause consumers to be denied credit cards, car loans and even mortgages.”  This post will go into detail about what to look for and how to dispute them.

How is this going to improve you credit score.  Well, if you have an error it is more than likely a negative one.  If you dispute the error and it is found to be incorrect, it will taken off your credit report.  This negative factor will no longer be in the equations and has the potential effect of raising your credit score.

The first part of this equation is to get a copy of your three credit reports that is right all of them.  Here are some links to some sites that you can find all three.

• Fico Scores/Reports
  
• Get an Equifax 3-in-1 Credit Report Now
  
• Get Your Free 3-in-1 Credit Report
  

Why all three? Because each credit bureaus has their own report on you and they don’t share data.  Also, your accounts are not required to report to all three.  So if an account reports to just one credit bureau and their reports will state something that isn’t true.  So, if you don’t have the right report you will never find it.

Here is a quick overview of the error disputing process.  If an error is reported to the credit bureau, they have to investigate it and get back to you within 30 days.  The investigation involves contacting your account and asking them if this information is not correct.  If the account agrees that it is wrong or they don’t respond back it will be removed from your credit report.  If the account says it is correct it stays.  If this is still an error you must then take it up with your account.

Now lets review your credit report and the things to look for.  You should keep a separate piece of paper or some way to record what you think are errors.  This will serve as a quick reference and as a checklist for you to follow up on.

The things to Look For

The first section is your personal information.

• Name
• Social Security Number
• Birth date
• Addresses

A common error could be the misspelling your name.  But if you see addresses that you have never lived at, this could be the sign of a much bigger problem like identity theft.  Hopefully not, but write down any errors you see.

The next section is your accounts.  Here is what to look for here:

• Any Late Payments older than seven years.  These can be removed.
• Accounts that you don’t know about.  This again could be a sign of identity theft.
• Your spouse’s debts that they had before marriage.
• Delinquencies that you didn’t know about

The next thing to look at is your inquiries.  Here are two things to look for:

• Any inquiries that are old then two years.  These can be removed.
• Any hard inquiries you didn’t know about.

The last thing to look at on your credit report is your collections and public records.  Here is what to look for:

• any bankruptcies older than 10 years.  These can be removed from your credit report.
• paid liens or judgments older than seven years.  These can be removed.
• duplicate collections.  This is often the case if you have been sent to collections and then a collection agency sells the debt to another.  It could have the presence of two collections and can be removed.

Now, that you have your list, you need to do your research.  It is best if you have some proof on your side when disputing errors.  After this you can dispute the mistakes.  There are three ways: telephone, mail, and online.  Here is that information for each credit bureau:

Experian

• Mail: Experian Disputes -  P.O. Box 2104 Allen, TX 75013
• Phone: (888) 397-3742
• Experian Dispute

Equifax

• Mail: Equifax Disputes – P.O. Box  740256 Atlanta, GA 30374
• Phone: (866) 238 8067
• Equifax Dispute

TransUnion

• TransUnion Disputes  – 2 Baldwin Place P.O. Box 100 Chester, PA 19022
• Phone: (800)916-8800
• TransUnion Dispute

When you do send in your disputes, you should include your evidence.  This will be forwarded to your account and will help back up your case.  Furthermore, if you do choose to dispute through the mail send the mail certified.  This way you can be assured of its delivery.

The process will begin with the credit bureau contacting your account with the dispute and the information provided.  The account then has a period of time to respond.  If they do not respond in time  it will be removed from your credit report.  If the account responds stating that it is incorrect it will be removed.  Also, your account will be required to contact the other credit bureaus to ensure it is taken off of the other reports.  If the potential error is stated to be true by your account, it will stay on your report.  You then will have to contact your creditor about the error.

The credit bureau’s investigation is conducted over a 30 day period.  Most responses come with in 30 to 45 days.  If there was an error, you are entitled to a new copy of your credit report without the error.  Also, you can request a new report be sent to anyone who has received your credit report in the previous six months.  You can also have a new report sent to any employer who has access your credit report in the last two years.

If the item is unresolved, you can ask the credit bureau to include a statement of the dispute with your credit report.  This will have no effect on your credit score, but will be given to anyone wanting to review your credit report.

The process will take some time so if you are planning to apply for a loan you need to find and fix any possible errors right now.  You should be trying to get the best possible rate on a loan and you need to do anything to improve your credit score.   This is the one of the simplest and quickest way to give you that boost.