Credit,  Mortgage

How to Dispute an Error on Your Credit History

Discovering an error on your credit history can be a rude surprise when you’re attempting to get pre-approved for a mortgage. Though most people don’t think about the details of their credit report until the need to secure a loan, it’s a good idea to check your report for inaccuracies periodically.

If you do find an error, the best way to attempt a correction is through a dispute letter. Dispute letters allow you to formally request a fix by the reporting agency. Though it may take a little time to get the errors removed, cleaning up these mistakes can have a direct (and favorable!) effect on your credit score, helping you secure lower interest rates and better terms.

Here’s what you’ll need to include for each mistake you find:

1. Which account shows the mistake.

2. Specifically what’s incorrect about the account where it appears in the report.

3. What changes should be made and why those changes should be made.

4. Any supporting evidence or documentation which will bolster your claim.

For example: “On my report, the Chase Visa ending in XXXX shows my account is still active. I closed this account in 2012 and should be shown as closed, not active. Included is a letter from Chase bank, confirming the date of my account’s closure.”

It’s a good idea to keep copies of everything you send. Also, be sure to send the correction to all three major reporting agencies (Equifax, Experian, and TransUnion) as well as the original creditor (i.e. the credit card company, utility, etc.). You can find the current dispute mailing addresses on these company’s websites. Federal law mandates that agencies must help you within 30 days. Keep records of your disputes and when/how you communicated with the agencies.

Getting your credit in shape is an important step to take when you’re preparing to buy a home. I help buyers prepare every day! Get in touch: 614-565-8161 or Teresa@TeresaButler.com

Since 1983, Teresa has been selling residential real estate in the Central Ohio area. Since the start of her career she has helped many happy clients realize their dreams through real estate. As a result, her loyal clients, personal referrals and repeat business form the foundation of her career. Her clients choose her for her knowledge, expertise, honesty and experience. You can count on Teresa as your guide and resource for Central Ohio real estate. She is a member of the National Association of Realtors, Ohio Association of Realtors, Columbus Realtors and Independent Brokers Association. Have questions about real estate? Contact her today!

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