Tim Bock asked:




Many times people are unaware of exactly what’s in their credit report, let along if there’s a collection account in there. There are usually 1 or 2 reasons why a collection account may exist.

- The account went to collections
- Mistaken identity

Fortunately it’s not the end of the world. There are steps that can be taken to get the collection off of your credit for good.

Get a copy of your credit report

There are 3 main credit bureaus where you can obtain a copy of your credit report. These are as follows:

- Equifax
- Transunion
- Experian

Dispute the findings

Each credit bureau operates separately. Therefore having the account deleted from one does not automatically mean it will disappear from all 3. Lenders do look at all three credit reports, so it’s extremely important to follow up with all of them. Not doing so will affect your ability in getting a loan.

Do it in writing

It’s important to mail your dispute in. Do not try to do it over the phone. Writing gives you documentation in case you need it. After they received the dispute, they will investigate the matter. If the investigation is not resolved within the allotted amount of time, the item will automatically be deleted from your credit report.

Fair credit reporting act

Become familiar with this law, before you contact the credit bureaus. It could save you a lot of time and trouble. It’s important to get the facts, so you have all the tools at your disposal when going up against the credit bureaus.

Tamara

Hector Milla asked:




The credit report bureaus under the direction of the Fair Credit Reporting Act or FCRA have made it possible for you to access your free reports online, by phone, or through the mail every 12 months. You can request your free report at any time of the year. The bureaus as required by law did this because of the rash of identity thefts, inaccurate reporting on the part of the bureaus and because consumers have a general right to see what is in their credit reports without having to pay a fee. For some this free service has been a life saver.

The website that is regulated by the federal government and working in conjunction with the bureaus provide instant access to free credit reports when you provide your personal information. The site is a secure site so there is no need to worry about providing your information to it. Be wary however of scam websites that claim you can get your credit history for free only to charge your card later when you provide them with this information. The government website that provides your free history will not ask you for any financial information in order to charge you for it.

Having access to your files can be very helpful because you can see if the information contained in them is accurate and up to date. If there are any inconsistencies or information that you do not recognize, you can dispute this information with the bureaus and they are required to investigate it and remove the item if it is not accurate or pertains to you.

Your free report will not include your score which you will have to obtain from one of the paying services. But make sure that the site is legitimate and secure before you sign up for it. The information in your file is used to calculate your score and this is what lenders and creditors will use to determine your creditworthiness. It is like a grade you receive for your financial behavior, the higher your score the better your credit and the lower your score the poorer your credit.

If you need a hard copy of your credit files for your records you’ll need to either call the phone number or write to the address listed on the government site in order to have them mailed to you. And trough internet is always a good way.

Javier

Rachel Altman asked:




A bankruptcy can have a devastating effect on your credit score. A bankruptcy listing on your credit reports to many lenders is the only thing they need to see to determine you are completely unworthy of credit.

Many people will tell you that it is impossible to remove a bankruptcy from your credit reports. The truth is that you can dispute a bankruptcy the same as you can any other type of derogatory account on your credit report.

Note that whether the account is “really” yours or not has no bearing on the credit bureaus responsibility to verify it. If it cannot be verified, it must be deleted. Period. According to the Fair Credit Reporting Act, the burden of proof is on the credit bureau.

Please let it be clear that it’s never ever wise to be dishonest when communicating with credit reporting agencies, plus it is totally unnecessary. There are many ways to dispute the bankruptcy without lying.

Did you know that the credit bureaus don’t even investigate public records? The courts will only verify such records in person. The credit bureaus will claim that they have a system to verify such records, but when it comes down to it, they don’t. They also know that if a consumer were to seek litigation and financial damages in a court of law, they would be in big trouble.

I had my bankruptcy removed from 2 out of 3 of my credit reports. The one that would not remove the bankruptcy claimed that they verified it electronically and that it’s public record. It is indeed public record; they were right about that part. But, I asked them who they verified it with and they said they verified with my local courthouse. That’s impossible since the local courthouse confirmed that they only verify public records in person – not electronically, not through the mail, and not over the phone.

This particular credit bureau is much harder to work with than the others. They are very adamant about keeping items on your credit report whether they are accurate or not. This credit bureau has also been sued the most. And as long as they refuse to properly investigate accounts according to federal law, they will continue to get sued the most.

Vincent

Tamara Rasheed asked:




First, let’s begin with some simple rules to help you dispute your negative and erroneous credit report information.

1) You should dispute everything negative on your credit reports. Everything negative on your credit reports should have the chance to be deleted.

2) The older your negative account is, the easier it is for it to be deleted. Negative accounts that are 2 years old or older are the easiest to have deleted because they are less likely to be traced back as yours (even if you know it is yours) after being switched from collection agency to collection agency.

3) If there is a possibility that an account does not belong to you, or if it includes data with errors, the credit bureaus will automatically delete it from your credit reports.

Let’s take a minute to talk about pay-off letters and their uses:

1) If you have paid-off accounts still showing on your credit reports, you can have those accounts deleted by including pay-off letters with your dispute letter when you mail them. When you negotiated the settlement or payment plan with that company, you should have received a letter stating the terms of the settlement or payment plan negotiation before making your payment by mail, and a pay-off letter after your settlement or payments were complete.

2) If you did not receive a pay-off letter after completing your payments, you can call that company and request a pay-off letter after the fact. Be sure that the pay-off letter states that your negative item will be removed from your credit report after you have paid it off based on your negotiated terms with that collection agency. Also, be sure that you have proof that you paid off that debt such as a copy of your check or your money order receipt.

3) If you do not have pay-off letters for some of your negative accounts, or if you do not have pay-off letters for any of your negative accounts, you can dispute all of your negative accounts as “This account is not mine”. The credit bureaus will dispute those negative items with the collection agency and many of them will be deleted.

When the credit bureau responds and you have items that have not been deleted, then you can work out payment arrangements or settlements with those collection agencies – as reasonable for your budget. Most accounts can be settled at a reduced amount of 50 – 75% of what was originally owed! Don’t forget to get a letter from the collection agency stating the terms of your negotiation before making any payments. Make your payments by mail once you receive that letter. You should also receive a pay-off letter when your settlement or payment plan is complete.

Credit Dispute Letters That Provide The Best Results:

“This is not my account” and “Paid as agreed” dispute letters are the best dispute letters to start with. You want to dispute accounts as not yours to give the credit bureaus a clean place to begin when investigating your accounts. Once they come back as verified, you can begin the second phase of your disputes.

“Paid as agreed” letters will provide you with a second investigation process where the credit bureaus will verify that you paid your account and it needs to be deleted. Your pay-off letters are handy here.

Each credit bureau should be sent 1 letter. For example, you’re mailing three “This is not my account” letters, one for each credit bureau.

Do not dispute accounts that do not appear on that particular credit report. For example, if you have 5 negative accounts that show up on your Equifax credit report, but only 3 of those appear on your Experian credit report, do not add the 2 that do not show up on the Experian dispute letter. Only dispute what you see!

Be sure to keep a log of your correspondence with the credit bureaus also.

Bonnie

Marc Sumner asked:




There are a number of ways in which you can have a collections agency reporting to your credit report. Most of the time it’s due to past due bills that were either overlooked or just never paid. You should know there are ways that you can try to fight this to attempt to raise your FICO score. This will in turn raise your buying power because you’ll be able to borrow more if you need to.

Every person has the ability to get one free copy of their credit report each and every year. All you have to do is make a request for it and it’s available to you either by mail or within a few seconds online. Most people don’t understand that you can dispute charges on your credit report.

What happens when you dispute these different collections charges on your credit report is that they will have 30 days to respond to the dispute, otherwise it’s marked as invalid. Most companies will respond to these disputes so all you will need to do is to negotiate with these collection companies and let them know you will pay off your debt sooner if they can remove this from your credit report.

What you should understand is that collection agency reps main goal is to get you to pay off the debt. So getting them to remove this shouldn’t be a problem if you can work out something with them to pay off what you owe.

Remember that 1 in 4 credit reports contain some sort of error that could be lowering your credit score without you knowing it!

Gladys

Jen asked:


I just disputed 5 things on my credit report to all 3 credit bureaus at the same time. Regarding, incorrect credit balances and payment status. how long will this take to get straightened out? I did it online.

Walter