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Why Dispute Your Credit Report Discrepancies

Learn how to use a credit report dispute letter to dispute your credit report items. Check your credit score and see for yourself that it has gone up by using this tip.

Some financial repair specialists have fees of $700 or more to improve your financial rating. Guess what, the tool they are using is this particular tip, disputing derogatory items on your report in order to get them removed from your record.

Check Your Credit Report

dispute your credit reportExamine Your Credit Report

So lets take our next tool from our repair bag, the microscope, and take a closer look at our credit report.

There are two ways to use this tip:

First check each item on your credit report for accuracy.

In other words, you in fact know that this item shouldn't be on your report. For example, you see an item listed that you know you paid off several years ago. Well, what should you do?

Use Credit Report Dispute Letter

You dispute this item with the credit reporting bureaus as inaccurate. By doing this you are putting into practice what the Fair Credit Reporting Act says is your right to do. It is your right to have this item pulled from your record. The law requires the creditor to look into this item within 30 days and notify the reporting agency.

Guess what, if the item is old or wrong, they inform the reporting agency that your item has been removed. Sometimes you have to help prove to the creditor that the item is inaccurate (i.e. showing them a canceled check for payment), to have the item deleted off your report. You are now underway in your credit repair.

Second, the item on your credit report is not wrong but is removed anyway - How come?

  1. The creditor is satisfied by some other means and doesn't want to take the time to report back. The discrepancy is removed because they didn't respond. Now that's in your favor, because each item removed is worth 20-25 points. Thus, you can items removed whether the creditor responds or not. How often can I count on this happening? Usually this happens about 30% of the time. So its well worth using this tip and dispute your credit report items.
  2. Another thing you can do is call your creditor and inquire directly, "do you delete?" This is an important phrase to use. If they say yes, you may be able to get them to delete the item once you meet their requirements. Statistics show that some will do so half of the time. So its worth trying.What does this mean?That means they will remove the item from the reporting agency records once it is paid. They may require a deletion fee to do this. Is this worth it? Yes, every collection removed from your report may raise your score 20+ points. Keep using credit repair tips and inquire if your creditor will delete.Why is this good?Well, if you are trying to buy a house, you want your score to look its best. So buy paying this with their required fee, it is removed! That's worth a lot in purchasing power especially in getting a better interest rate.
  3. What if the creditor doesn't "delete" and the item is correct? Sometimes just talking to the creditor and explaining your dilemma. Let them know you are trying to get a loan to buy a house or car. Be nice, they may remove the item from the report temporarily. Allowing you time to make the big purchase and then add it back onto your report. Why may creditors do this? Creditors know that this big purchase is critical to you and know you will be pestering them to do something. They are aware you may continue calling, writing or even disputing several times. This works about 30% of the time in getting creditors to temporarily remove an item.

This happened with a client who had a Visa card with two 60 day late and a mortgage with one 30 day late. He was able to get them changed.

Steadily Dispute Your Credit Report

Sometimes a creditor will work with you so you can buy a house. But, if they are not willing to work with you, start the pestering by faxing a dispute letter every week requesting a removal of the item. In other words, steadily dispute your credit report errors.

You want to address it to the account manager in charge. Then mail the dispute letter every 30 days requesting removal. This wears on the creditor until they remove the item or will now work with you.

Persistence is the key here! Keep disputing until you succeed in getting some form of action. That is the value of this credit repair tip, you can do the same thing the professionals do.

If necessary, you can send a letter explaining you are going to file a complaint with the Federal Trade Commission ("FTC").

Proceed to the next credit repair tip.

Where to Find Letters to Dispute Your Credit Report Items?

This website has a page that discusses these letters at Credit Repair Letters.

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