Credit Restoration – Playing the Dispute Game!

The three credit bureaus, Equifax, Trans Union and Experian, are private organizations that collect data (your credit information) to resale for a profit. While they COLLECT data, they do not verify anything unless you get involved.

Keeping this in mind, it isn’t surprising that an estimated 90% of credit reports contain some time of error.

If you are embarking on credit restoration, I don’t have to tell you how frustrating these errors can be.

Fortunately, the Fair Credit Reporting Act provides you with some protection against errors and questionable items in your credit file.

Now, no one can promise to remove legitimate derogatory items from your credit report. But it is your legal right to dispute ****ANYTHING**** you think might be inaccurate or questionable in any way.

Because this protection is in place, it makes sense for anyone who is serious about undertaking credit restoration to spend time learning how to play the dispute game.

Here is a step by step overview of the disputing process:

1. Get Your Credit Report

There are several options for getting a copy of your credit report. The first thing you need to decide is if you want to know your credit score. While the law allows you one free copy of your credit report, your free report will not give you a copy of your credit score. Still, having a report with no credit score is better than having no report at all! You can get your credit report for FREE at http://www.annualcreditreport.com

If you are going through the credit restoration process, getting your score is something you probably want to do. It is difficult to know how much work needs to be done to get your score in a targeted range if you have no idea where you are. You can go to most of the bureaus and get a single copy of all three reports. Or, if you are really serious about credit repair, you may consider signing up for a monthly monitoring service. These services can be very helpful because they will offer you a certain number of reports included and also alert you when something changes it your credit file. Many of them also have great “scenario” tools that let you see an estimate of what would happen if you took certain actions. (Like paid off $2,000 in credit card debt.)

For more information on my favorite credit monitoring services, click on the links below:

2. Once you have your report, GO THROUGH EVERYTHING.

Yes, everything. This includes your name, social security number, current and previous addresses, and employers. Carefully scrutinize your accounts to make sure that in addition to the payment status being correct, the opening date and credit limits are also correct.

3. Select 2 or 3 things that you feel are errors.

Obviously, you want to pick things that will most help your credit score. Late payments, collections and credit limits on your credit cards reporting incorrectly are key things to look for. Keep in mind that you will likely have the most luck removing older items and derogatory items that are now paid. The reason for this is that lenders will have a more difficult time finding records on older accounts and will be less likely to take the time to verify them if they are already paid.

4. Write Dispute Letters

This is a very simple letter that states what you feel is inaccurate and why. You will need to include all of your personal information as well. One of the easiest ways to handle disputes these days is online, however, using certified mail can be a better route because you have proof of your credit disputes.

5. Wait 30 Days for response

The 30 days is the key part of winning the dispute game. Why? Because lenders MUST verify that the debt is accurate within 30 days of you disputing the debt. If they fail to do so, the credit bureaus MUST remove the item from your credit file. There can be many reasons they miss this deadline – understaffing, difficulty finding your records. Regardless of why they missed the deadline, the item will be removed from your file.

6. Look at Results
If the items were successfully removed – YEAH!!! Your credit restoration is now under way. If not, you still have several options. If you did not submit any documentation with your original dispute, you will want to dispute again and provide any documentation that you might have. You can also request from the credit bureaus to know the method they used for verification. Chances are, they haven’t actually spoken with the lender. If not, make sure you have the creditor’s information and begin disputing directly with the creditor as well.
7. Repeat
Keep disputing a few things at a time until your report is clean. Keep in mind that you don’t want to dispute everything at once, as this can raise a red flag with the credit bureaus and your dispute may be disregarded as frivolous.

If you are feeling overwhelmed by the credit restoration process, please check out my free CD – 7 Insider Secrets I used to raise my credit score almost 300 points! This CD comes with 2 weeks free enrollment to Credit Repair College – my weekly video coaching that takes you step by step through the credit repair process.

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