How to Handle Derogatory Credit Information in Your Credit Report
Perhaps the very best thing that a consumer can do to raise his credit score, is to evaluate the information in a credit report, and remove invalid entries.
It is up to the individual to monitor this information on a regular basis, since there are numerous instances of errors made due to the volume of data that is received by the 3 credit reporting bureaus (Experian, Equifax, and TransUnion).
The first step is to get a copy of the credit statement.
This document is available for free, once per year, from any of the 3 credit reporting companies.
It can be done online through their respective websites, or the old fashioned way -- through the U.
S.
postal service.
After having received a physical copy of their information, consumers should read each line item separately and check for mistakes.
Anything that is incorrect should be eliminated from the document, which will in turn will help to increase that all important score.
This can be accomplished with corroborating evidence such as a statement from the Credit Card Company or local bank.
Items that do not have the necessary evidence may not be as easy to remove as those that do.
A formal letter to the bureau will start this process, and should be detailed and to the point, with copies of the evidence included.
This can be penned by hand, or better yet, typed with a word processing program.
This is much better than the pre-made template packages that are readily available on the World Wide Web.
Once complete, consumers are advised to send this letter by certified mail.
Upon receipt, the bureau will have to contact the creditor to validate the information contained in the credit report.
There is a 30 day grace period for the creditor to validate the disputed items.
Following the expiration of this time limit, all dispute information is removed automatically if no reply is received.
A new version of the credit report will be sent to consumers showing the offending items have been removed.
Individuals who are constant and vigilant often will get their credit rating restored.
If necessary, a consumer may ask for the reviewer's name and phone number to get satisfaction.
They may be able to explain why the dispute has been denied.
Getting rid of invalid or mislabeled line items will boost the score of any consumer who want to raise his credit rating.
It is up to the individual to monitor this information on a regular basis, since there are numerous instances of errors made due to the volume of data that is received by the 3 credit reporting bureaus (Experian, Equifax, and TransUnion).
The first step is to get a copy of the credit statement.
This document is available for free, once per year, from any of the 3 credit reporting companies.
It can be done online through their respective websites, or the old fashioned way -- through the U.
S.
postal service.
After having received a physical copy of their information, consumers should read each line item separately and check for mistakes.
Anything that is incorrect should be eliminated from the document, which will in turn will help to increase that all important score.
This can be accomplished with corroborating evidence such as a statement from the Credit Card Company or local bank.
Items that do not have the necessary evidence may not be as easy to remove as those that do.
A formal letter to the bureau will start this process, and should be detailed and to the point, with copies of the evidence included.
This can be penned by hand, or better yet, typed with a word processing program.
This is much better than the pre-made template packages that are readily available on the World Wide Web.
Once complete, consumers are advised to send this letter by certified mail.
Upon receipt, the bureau will have to contact the creditor to validate the information contained in the credit report.
There is a 30 day grace period for the creditor to validate the disputed items.
Following the expiration of this time limit, all dispute information is removed automatically if no reply is received.
A new version of the credit report will be sent to consumers showing the offending items have been removed.
Individuals who are constant and vigilant often will get their credit rating restored.
If necessary, a consumer may ask for the reviewer's name and phone number to get satisfaction.
They may be able to explain why the dispute has been denied.
Getting rid of invalid or mislabeled line items will boost the score of any consumer who want to raise his credit rating.
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