By HILARY JOHNSON
Bills Got You Down?…Cleaning Your Credit Will Help!
YOU’VE FOUND THE PROBLEM: NOW WHAT?
You know the information being reported about you is incorrect. You are probably a bit angry and annoyed that lenders are seeing this information and there is no simply way to remove the information.
If anything, the fact that it will take up to two months to have it removed can also be annoying. Still, the process is in place to ensure that the most accurate information is on your credit report.
Once you have found an error, you will need to fill out a form stating so at the credit bureau’s website. This part is easy. You likely will need to provide the following information:
The item you are disputing (your credit card, your mortgage loan, etc) The reason for your dispute (it wasn’t late, the information is inaccurate or incomplete, etc)
Any additional information on why this is the case (proof of a canceled check or statements to back up your claim.)
Generally, the information regarding your proof is not collected from you. Rather, the credit bureau will require that the credit card company or lender verify this information. They will need to show proof that the claim they have made to the credit reporting agency is in fact true. In other words, the burden of proof is on the lender, not on you, the borrower.
This is a good thing because it is often more difficult to prove something is true than to have to prove that something is not true. Once you file a claim with the credit-reporting agency, the creditor must show proof that your claim was actually accurate.
Here is a closer look at the process:
You pull a copy of your credit report. You find an error on your report.
You contact the credit bureau and let them know this is not accurate. For example, it may be an account that is no longer one you have and does not carry a balance though the report says it is.
The credit reporting agency will then contact the creditor. They let them know of your dispute with their claim.
The creditor must dig through their records and find the information. Generally, this is available on computers and is fairly accurate. There could have been a mistake when the information was reported. Or, there may be inaccurate information in their system. In either case, they need to show that the information is accurate.
The credit lender has 30 days from the time you have filed the complaint to straighten out the situation. Most lenders want to report accurately.
Then what, you may ask. Once the claim is with the creditor, the credit reporting bureau has to wait to hear back from the lender. Is this information accurate? If so, can they prove it?
If they find that the information is accurate and they have proof that it is, the lender’s claim is reported to the credit reporting agency who then leaves the information on your credit report.
There can be no further disputes against the information after that decision. If you have overwhelming proof of the situation, contact the credit bureau again requesting help to resolving the problem. Generally, though, a paper trail is the only way to disprove their claim.
If the creditor comes back and says that they cannot prove the claim they have filed against you, for whatever reason, the credit reporting agency will then remove it from your report. This may help to boost your credit score right away, or it may have no effect, depending on the type of report, the length of time since it was reported and other factors. The key here is that it has removal and you no longer have to live with the mistake.
If the creditor misses the 30 day deadline for coming back to you about the claim, then the credit reporting agency will remove the mark from your credit report as it cannot be proven. As with the opposite scenario, once this decision occurs, it cannot have a reversal.
In any case, within that 30 period you will not know what is happening. But, after the report has been decided on, you will. The credit reporting agency will report the information to you in a letter, mailed directly to your home. This information is usually the final answer on the problem, yet it is nearly always the most accurate result, too.
Making The Most Out Of Claims
Filing a claim against something that has been reported on your credit report may feel overwhelming, but the process is very straight forward and really only takes a few minutes to get started. It is not the job of the credit reporting agency to verify the claim further than relying on the information that is provided to them.
In other words, don’t be angry with or treat the credit bureau wrongly as most likely the item was reported incorrectly to them. Nevertheless, they are working with you to ensure your credit report is the most up to date and accurate as it can be.
Do take the time to be thorough with your claims and be sure to follow up on them. Provide information to the credit bureau about why you feel that the information is incorrect.
“This information is not right.” If you type this into the report, chances are good that they will need a bit more information. You may be required to check boxes to explain further the situation.
“This account was closed on May 5 th , 2003 after being fully paid off by a check I have the receipt for.” This is much more thorough and gives enough information for the creditor to go back and track down the problem. You may be 100 percent right in both cases, but if not enough information is available; it can be difficult to prove.
Be patient, too. The credit bureaus are not very friendly in terms of providing you with details about the process and where it stands. Therefore, there is no benefit in calling the company repeatedly and requesting more information.
Also, be sure to check your other credit reports for the same or similar mistakes. It is a good sign if the error only appears on one report even though the other two credit bureaus also report on that account. Yet, the same mistake may have been reported to all three. Go through the accounts and follow up!
Finding mistakes on your credit report is vital to improving your credit score and the way that lenders see you. If you do not take the time to do this, you may find your credit report is suffering. Avoid mistakes. Make sure your credit report is accurate by following this process at least one time each year.