A 2017 Study by LendEU, a re-financing company, disclosed that credit report errors are the number one grievance on CFPB’s website. And though they may seem like a bother to you, these errors may cause severe problems in your world of finances. Though you’ll still be able to get a bad credit merchant account, getting additional funding will remain a challenge.
For instance, a Lexington Law study showed that over 70 percent of U.S citizens are denied home loans because of bad credit, and these poor scores are most times caused by credit report errors. This is to say if you follow up and have the errors on your credit report corrected then you can increase your possibility of getting extra financing when in need.
But how do you deal with the errors that are dragging you behind?
Confirm how long it has been there
The majority of negative credit information stays on the report for seven years, except for bankruptcies that last ten years. After this period, the info should be removed from your report, and if not, the bureaus might have put down an incorrect date for the debt. But you can always send them evidence of the time of the debt.
Compare the three credit reports
The three companies that provide credit reports are Equifax, TransUnion and Experian and they all different. They might have different mistakes and debts. Luckily you have the chance to download them for free once every year at AnnualCreditReport.com.
If you find any mistakes, follow up with the bureau to ensure it is removed, or send a complaint to the Federal Trade Commission & CFPB.
Your letter should include:
Contact information: name, address, and telephone number
Report number, if present
The details of the mistake you’re disputing
Reasons for disputing the info
A request that the data be corrected or removed
Attach a copy of part of your report that contains the info you’re challenging and have it highlighted. Also, remember to keep a copy of the dispute letter.
You should hear from bureau within 30 days. In case you report is corrected, the bureau must send an official notice to all report providers it gave wrong information.
Get a Legal Representative
It is advisable to revise the whole credit report once more after spotting and eliminating an error. An FTC 2015 follow up study— after the one in 2012— revealed that out of 121 customers who had a single unsettled dispute on their reports in 2012, an entire 84 still complained of erroneous data.
It’s annoying how credit bureaus don’t pay attention to the mistakes on your credit report. Because they don’t want to waste funds digging deep into disputes, so they choose to stay silent unless you file a claim. That’s why you need to hire a lawyer or credit repair firm to help you solve any errors you feel the bureau is hesitant to correct.
Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, America’s leading bad credit merchant Account provider serving both traditional and high-risk merchants. His passions include producing music, and traveling to far off exotic places.