dispute credit report errors

How To Dispute Credit Report Errors

Credit score is a large factor in qualifying for a home loan. The higher the score, the lower the interest rate. But did you know that your credit report could have mistakes that you’re not even aware of? Here is valuable information on what to look for and how to dispute credit report errors.

How To Dispute Credit Report Errors

What Kind of Errors Should I Look For?

The main errors to look for fall into one of more of these four categories.

  • Identity – It is important that you are checking that the name on the credit report reads your legal name, correct phone number, address, and social security number. This is the area where you can spot indications of identity theft or information that belongs to another person. For example, if you are a Jr. and your father is a Sr. but your report reads Sr. it could be a simple mix up but could drastically affect your score.
  • Account Status – This is the section that shows which accounts are opened and which accounts are closed. This is also where you can see the dates of when the accounts were opened/closed and if debt is listed more than once with different names.
  • Data Information – If you have previously disputed a credit error, this section will show the correction. You can also see if you have one account under multiple names, which will negatively affect your score.
  • Balance – In this section you are looking to see if there is an incorrect credit limit listed or current balance. These numbers should match the numbers from your bank or creditor.

How To Dispute Credit Report Errors

Once you’ve found one or more errors on your credit report, it’s time to dispute. Here are four things to remember when disputing credit report errors.

  • It’s important to never dispute items online as this gives up the legal rights of the consumer – so send your letters via certified mail.
  • Check the date of last activity on the credit report. If the DLA (date of last activity) is more than 12 months old do not pay on a collection.
  • Don’t pay off credit cards and close the accounts. You will lose the entire credit history and this could drop your scores dramatically.
  • Don’t use free credit reports to dispute negative items as this will allow them 45 days instead of the traditional 39-day dispute process.

If you need further help please contact our recommended credit repair specialist Troy Martin at troy@lifelinesolution.us / (253) 606-3009.

Conclusion

Even though it’s tedious, combing through your credit report can reveal errors which can be hurting your credit score. When applying for a home loan, it’s important that you are 100% aware of your credit score and are confident that it is correct as you want to be offered the highest loan amount and the lowest interest rate.

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