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Are you filing the credit report dispute correctly

By Andy Snyder
Published: Friday, June 25th, 2010

The entire of America today runs on credit. If a person wants any kind of investments he will have to apply to a creditor. This creditor will then use your credit report and based on the information in the report make a decision whether you can get the credit or not. If you do get the credit, the rate of interest will be decided by the report as well. Therefore, it is very important to ensure that the credit report carries accurate and correct information. If it carries any erroneous information it will mean that you are paying for someone else’s mistake.

Credit reports are prepared by three separate agencies. Each of these three agencies get their information from different banks, courts and even post offices. Information is sent over in a periodic manner ensuring your credit report is up to date. Every person is allowed by the law to get a free credit report from each of the three agencies every year. The three agencies are Equifax, Experian and TransUnion. You can get a report from any of these three agencies but it is advisable to use the government website to get the report as approaching the agency directly might cost you money.

A credit report contains a lot of information including personal information such as your different addresses, full name, age, spouse’s name etc. It will also contain all the details about each of your credits including the mode of payment you usually use, how punctual your payments are and how often you tend to make late payments. All of this information gives the creditor a clue as to who you are financially. This will help him take a decision regarding whether the credit should be given to you or not. It will also help the creditor assess the risk factor and decide on the interest rates. Thus with a good credit report, you can be assured of a credit at low interest rates, while a bad credit report will affect your future plans adversely.

Mistakes are common and they can occur on your credit report too. Experts agree that credit reports must be monitored regularly. If you find any erroneous information, it must be immediately taken care of. Once you find a negative entry in the report you must raise a dispute. Raising a dispute is a fairly simple process. You take a cop of the report and mark the erroneous entry.

Write a letter requesting an investigation into the matter and making sure the negative entry is removed. Make sure to send the letter by certified mail and ask for a return receipt. If there is no action for thirty days, write a demand letter asking the credit entry to be removed. The agency, by law, has to provide you with a free and corrected credit report. You can also request credit report investigations online. There are sites where you can view your credit report online and there is a provision to raise a dispute. Many sites have just multiple choice options where we have to select our reason and a few have a window for our comments.

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