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Common Mistakes When Disputing Credit Reports

David Warner

David Warner

Financial Advisor

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If you have read any of our other articles, we have discussed at length one proven way to increase your credit score and strengthen your credit report: disputing false claims on a credit report. Typically, many consumers rush the entire process, leaving or opening the door to mistakes and errors, which ultimately are counterproductive to their claim. In light of this, given your goal to strengthen your report and clean it – it’s imperative that you take your time and do proper research. Today, we are going to share the most common mistakes that credit holders make when trying to dispute their credit report. We hope that you take this information and apply it to your specific situation.

 

Before Filing a Dispute

So, before you can make any mistake filing a dispute, there are a few important things to consider. First and foremost, when you are accessing your credit report and profile, it’s important to track where you are receiving your report from, what credit bureau is reporting what, and, when analyzing your actual report, to document any section or part that is not 100% true. Once you have the information, and necessity to file a dispute, before you are quick to hitting send online or attaching a stamp for the mail, check out these three critical mistakes that can potential be counterproductive to your overall goal.

Three Common Mistakes When Disputing Credit Reports

 

1. Contacting Lenders

It’s essential to understand the basics of the credit industry before you begin the disputing process. The reason for this is, by understanding the role of credit agencies, credit bureau and lenders, you avoid this fatal credit mistake. People believe that the best way to handle any disputes with their credit report or score is by contacting the lender themselves. For example, if a late payment was reported to the credit agency by your credit card company – there is nothing that they can do to fix the problem. This is ultimately a waste of time and can prevent a dispute from being successful.

To avoid this problem and mistake, we highly advise compiling all of your data and information providing your argument and dispute. From there, rather than contacting lenders, go straight to the credit bureau and agencies. There is a wealth of information on each of their websites discussing how disputes work. It’s VITAL to follow each companies’ guidelines verbatim to avoid any discrepancies.

 

2. No Proof

If there is one thing that will get a dispute claim tossed out the door fast – it’s when an individual files a dispute with no evidence or claims. Whether you have lost or can’t find the information providing your argument, a lack of this information means you do not have any case or argument. So, before you are quick to submit any information to the credit bureau, ensure all of your information is supported by well-documented data.

With that being said, this leads us to another common mistake on the same topic. When you are preparing to file a dispute, take multiple copies of everything you are sending to the credit bureau. If you are planning on sending to multiple bureaus, make multiple copies of everything. We highly advise to neatly organize everything so it’s easy to find information when needed. Most of the disputed cases that are thrown out for no proof happen when individuals lost their information or sent the original copies. This is a critical mistake and should be avoided at ALL costs.

This is not a process that needs to be rushes – so be sure to take your time. It’s more important to get the information properly and accurately reported. Focus on constructing a great argument, find the proper proof, and make copies of everything. It will make your life, and the bureaus, must easier.

 

3. Not Enough Information

The last mistake that credit holders can make when handling a credit dispute is not compiling enough valuable information. If you don’t provide the agencies with the right information, you can guarantee your case will not be heard or seen. This is typically true for those that attempt to file a dispute online – reason being, the online service does not give consumers an opportunity to provide thorough or in-depth information. With that being said, we highly advise taking the time to file a dispute the classic route – which means printing out the forms, creating a letter, and mailing all applicable information. Again, it’s of utter importance to include all required information per credit bureau, which can be found on their respective website. If you are ever unsure about filing a credit dispute or the information needed – you could contact any bureau for help.

 

Cleaning Your Credit Report

By taking measures to dispute your credit report, you are, in a way, cleaning up your credit report; one of the smartest decisions that credit holders can make. The truth is, the majority of people are totally unaware of what their credit report looks like or if there is even any falsified information hurting their credit score.

Given the culture that we live in today, more and more lending companies care more about a clean credit report and a portrayal of a dedicated financial game plan than anything else. Our words of wisdom are to take disputing your credit report seriously and to ensure the highest quality of material and accuracy.

Disputing a credit report is a measure and tactic that can potentially increase your credit score and, due to this, you should approach this with patience and caution. If you look closely, almost every single mistake could be avoided by consumers by simply taking the proper time that is required.

So, let these mistakes be your learning lesson so you may move forward with a clean and strong credit report. The results are rewarding, and your credit score will naturally progress. You will be grateful on that one day that you secure your dream home or dream care, knowing you took the time to clean up your credit report.