How To Dispute A Bad Credit Report

In this article we are going to discuss how to dispute a bad credit report. There are many times we go and apply for a loan, to find out that there was a negative item in our credit file that prevented us from obtaining that loan. This is why getting a copy of your credit report before applying for any insurance, job, housing, or loan is important. So, what do you do about negative items in your credit report that do not belong there? How do you find out what that item is and how do you change it? You need to know exactly how to dispute your bad credit report.




First, you need to get a current copy of your credit report, from all 3 major credit bureaus. You can do this once every year for free. Otherwise you pay a small fee. If you were denied credit, employment, insurance, housing, or have had negative action from a current lender (like an increase in interest rates) you can request a free copy of your report from the bureau that they used to get your information from. Once you have these copies in hand, review them carefully for any negative items. Look over every item and be sure you know what that account is. If you see something that is not right you need to dispute it. Now, you are probably wondering how to dispute a bad credit report. To do this simply fill out the dispute that is included with your credit report or you can start an investigation online. Once you have submitted the request, you may have to wait up to 30 days for a response. The credit company that reported the item has 30 days to respond or the item will be removed from your credit file. If it is put back in again, the credit bureau is supposed to notify you. You will receive notification about the results of the investigation. I have found that Equifax does not readily change information, irregardless of how wrong it is. If you find that the information comes back verified and you know that the information is incorrect there are other steps to take to dispute bad credit reports.




Now what, you may ask? How to dispute a bad credit report when the credit bureau says it's correct? You contact the company reporting the item that is in question. The credit bureau must provide you with contact information. Call or write to the company. I suggest writing, sending all correspondence via certified mail. This way you have a paper trail with legal proof that you contacted them. State that you are disputing the debt in its entirety. Tell them that you want written proof of the validity of the debt, including the name of the original creditor if there is one. It's really important that you sound like you mean business. State that they are to cease and desist all collection activity until this dispute is resolved. If you really want to drive home the point, make sure you state that collection activity includes reporting the debt as past due to the credit bureaus as it is against federal law to report a disputed debt as a negative item. Let them know that if they do not respond to your request in writing within 30 days, then you will assume the debt is not valid and it is to be removed from their files. This is the best way to dispute bad credit reports. If you show the creditor that you know the fair credit reporting act and what your rights under this law are, they will be very careful in how they deal with you. When asking how to dispute bad credit report, the above information should serve you well.




As a final note, if you feel that a creditor is wrongfully trying to collect a debt from you that is not yours, or one that has been paid, contact a local attorney and ask if they can send a cease and desist letter to the company. This usually does not cost very much, if there is a local law school, ask one of the students who has just passed the bar exam for help. They can use the money and experience. Especially if you agree to give them a reference as a client. We have shown you how to dispute bad credit report, take this information and use it well.