Nearly 80% of all credit reports contain errors of some kind. Recent studies also indicate that about one-fourth of these reports contain mistakes so egregious that applicants could actually be denied credit! But, isn’t disputing derogatory credit complicated or expensive?
Disputing Derogatory Credit Is Not Complicated
The three main credit bureaus, Equifax, Experian®, and TransUnion®, are required by law to provide you with a free copy of your credit report once every 12 months. To request your free copy (one from each company) visit AnnualCreditReport.com. I’d recommend that you pull one report every 4 months to monitor what is being reported. These reports will NOT show a credit score.
What’s Your Credit Score?
You may be able to purchase a report with a credit score or you can use a free service such as Credit Karma. You should know, however, that there are at least 14 different credit scoring models used for different industries. The credit score given to you by the car dealer will most likely be different from the one with your mortgage company. So, the accuracy of the scores from services such as Credit Karma isn’t perfect but it will give you a good idea of where you stand.
While you’re online, be sure to visit www.optoutprescreen.com as well. This will help you avoid the hassle of becoming a “trigger lead” and being bombarded with unsolicited loan, credit card or insurance offers each time you have your credit pulled.
If you do find any discrepancies, thanks to the Fair Credit Reporting Act (FCRA) you can legally dispute mistakes or outdated items for free. Once notified of a mistake on your report, a credit bureau has thirty days to investigate and respond. If the information can’t be confirmed, then you have the right to request the item be removed from your credit profile. Here is a Sample Dispute Letter to help get you started.
For help with your credit, click HERE.
