One of the most common reasons why you might see your credit score tank actually has nothing to do with the individual himself or herself. According to Credit Karma, studies have indicated that as many 25 percent of credit reports contain some sort of an error. This could range from a personal information mistake to incorrect account information or even a fraudulent account. These errors could impact your credit score severely, so it's important to get them removed if at all possible. Here are some tips to help you file a dispute:
Order a Free Credit Report from the Three Major Bureaus Yearly: The easiest way to spot an error or identity theft is to order your yearly credit reports. It's important to order reports from all three bureaus as different information can be reported on each. Scan each report closely to make sure everything is correct and there aren't any strange accounts on your file.
Keep Meticulous Records: In the event that you do need to file a dispute, you'll have a better chance of getting the error removed if you can provide evidence. Keep records of all accounts opened and pay special attention to an account if it goes into collections. When you submit a dispute letter, be sure to include copies of all documents relevant to your claim.
Understand What You Are Actually Able to Dispute: The following are things that you can actually dispute on your credit report:
· Negative items that have passed the Statute of Limitations. Check your state for retention periods.
· Incorrect personal information
· Duplicate accounts
· Fraudulent accounts
· Incorrect reporting of accounts
· Shared credit files
If you're one of the 30% of people who have their dispute denied, the information may be correct. If you know that it isn't and you have evidence from your records, pursue the matter further. If the creditor or collection agency does nothing, it can be subject to legal action.
Follow Best Practices to Improve Your Score: Even if you can get the mark removed from your credit report, your score may not improve over night. Help yourself by paying down your debt and making payments on time. If you need new credit and can't obtain it because of your score, apply for a secured credit card to rebuild credit. Although it does take time to improve your credit score, you can build a foundation for long-term credit stability.
Order a Free Credit Report from the Three Major Bureaus Yearly: The easiest way to spot an error or identity theft is to order your yearly credit reports. It's important to order reports from all three bureaus as different information can be reported on each. Scan each report closely to make sure everything is correct and there aren't any strange accounts on your file.
Keep Meticulous Records: In the event that you do need to file a dispute, you'll have a better chance of getting the error removed if you can provide evidence. Keep records of all accounts opened and pay special attention to an account if it goes into collections. When you submit a dispute letter, be sure to include copies of all documents relevant to your claim.
Understand What You Are Actually Able to Dispute: The following are things that you can actually dispute on your credit report:
· Negative items that have passed the Statute of Limitations. Check your state for retention periods.
· Incorrect personal information
· Duplicate accounts
· Fraudulent accounts
· Incorrect reporting of accounts
· Shared credit files
If you're one of the 30% of people who have their dispute denied, the information may be correct. If you know that it isn't and you have evidence from your records, pursue the matter further. If the creditor or collection agency does nothing, it can be subject to legal action.
Follow Best Practices to Improve Your Score: Even if you can get the mark removed from your credit report, your score may not improve over night. Help yourself by paying down your debt and making payments on time. If you need new credit and can't obtain it because of your score, apply for a secured credit card to rebuild credit. Although it does take time to improve your credit score, you can build a foundation for long-term credit stability.