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Credit Education > Credit Report > The Way to Manage Disputes in your Credit Report

The Way to Manage Disputes in your Credit Report

By Janet Lacey
Published: Wednesday, December 23rd, 2009

Credit reports and scores are the standard credit worthiness rating tool used by major credit companies to see whether an individual is viable for a loan, credit and other financial agreements. Indeed, these documents can change the course of the life of the individual being judged through them. After the passing of the Fair Credit Reporting Act or FCRA the major credit bureaus are constantly pressured to avoid discrepancies that may affect the credit worthiness rating of individuals.

The FCRA changed the game of getting an evaluation from the credit bureaus by making every citizen entitled to a free annual set of report and score. Even if there is a constant pressure, the volume of credit history records and other financial factors that they have to factor in with just a single set of report and score forces them to make mistakes. These mistakes can dramatically lower the score of an individual and make him unviable for any loan and credit account that he or she wishes to get.

Annually it is estimated that among the millions of credit reports disseminated by Equifax, Experian and TransUnion 79% of those are inaccurately accounted for. This also means that the numerical counterpart of these reports which is the FICO score or credit score is also 79% inaccurate. To compensate for the 79% of inaccuracy these credit bureaus give enough leeway for those who would want to contest their faulty credit history recording. The credit bureaus introduced the process of disputing. Disputing enables the recipients of the faulty reports and scores to contest any part of these documents that they think to be wrongly documented and have made their credit rating lower.

Filed disputes would require letters from the creditors proving that the disputing party is right in their assumptions. Dispute letters without the creditors’ letters are still accepted but would normally take a longer time before being resolved. Investigations are to be made to see whether the disputing party is right on their disputing grounds. To answer normal dispute credit bureaus would usually take 30 days to 40 days before responding depending on the gravity of the complaint. The dispute letter from the disputing party will be used by the credit bureaus to see the parts where deletions and modifications are needed to be done. After this part of the dispute process, the disputing party can only wait for their new credit reports and scores.

During the waiting period the disputing party is advised to go to the credit bureaus for follow- ups on their dispute case. This is advised to those who filed for disputes that are too complicated and would require special attention. There are existing cases where the credit record of the recipient was mixed up with other records which resulted to a dramatic lowering of the recipient’s credit score. Credit bureaus are needed to be followed- up every once in a while to insure that the dispute case is being handled. If the dispute is successful in favor of the disputing party, then they can expect a better credit worthiness standing.

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