Black marks on a credit report from any of the three national credit-reporting agencies of Experian, Equifax, or Trans Union will affect credit scores dramatically. Black marks occur for many different reasons, some are because an individual did not pay their debts in a timely fashion, or not at all in some cases, or even through neglect or mistakes in reporting that information. Know what can be done to clean up a faulty credit report if it dispute a claim on a credit report, it makes a difference between great credit and denial of a loan for bad credit.

Consumer reporting agencies give information on credit history to the nation credit reporting agencies in the U.S., and to the local statewide agencies too. Any individual that believes that an inaccurate report is on the national or state credit report can dispute the claim. It is not hard to do; it just takes purchasing the credit reports from them, and learning how their credit scores work, and what the numbers mean in relation to an investigation for dispute. The next step is to contact in writing with documented information of evidence to dispute the claim. It is preferable to send all correspondence via registered mail, so there is further evidence that they received the information. Keep copies of everything, including the dispute letter, receipts and evidence. Do not leave out any detail out over disputed information, and ask that the information be removed.

Reporting companies will usually have a reply to the dispute within 30 days, but some might take a little longer due to delays like holidays or federal closings. All information will be sent to the agency that reported it, and then it must by federal law investigate the request and report back to the consumer agency that sent the request to them. Any information that is found to be incorrect, it must be sent along to the national reporting agencies with the corrected information included. Law must give a notice of change to the individual, along with a free report when the change takes place, like a fact is deleted or revised to reflect new payment status. Changes can be made at a later date if it is found out that by the information provider that it was inaccurate. All of this though must be officially verified to the reporting agencies.

Notices must be sent to all parties that have inquired about credit scores and their reports if the information is found to be inaccurate. This includes anyone that has received information in the past six months, to employers that have considered a job for an individual in the last two years. There will be a time when a dispute is justified by the consumer-reporting agency, and if that does occur, a statement must be included in it, but a nominal fee will be required for each time it is requested. Sometimes too certain items will not be cleared, and at other times all of it will be cleared out, and a dispute settled. If certain items are not cleared write the consumer reporting company again and ask that the statement of dispute stay in the records.

Getting a credit history that is clear of black marks takes a little work and a lot of patience, but it can be done. Other ways to clear up debit marks is to file bankruptcy and start over, or set up payment plans with each company that business has been done with, or is currently in default but the account is not closed. Settlement, judgments or charge-offs can all be handled, but it will take time to clear it up. It took a while to get into debt, but the payoff of getting out of debt will be emotionally satisfying, and physically liberating.  Talk with a financial advisor or a trusted local banker that can lead to a clearer path of understanding on how to remove bad debt. If necessary, go to a guidance counselor that deals with finance issues of money management, and ask for some help to get it straight. They are trained in the right way to handle money, and know the best ways to get clean of over whelming debt.

Related posts:

1. What the Three Big Credit Bureaus Don’t Tell You when You Dispute a Report
2. Your Options for Consolidating Debt and Fixing that Credit Report
3. Knowing the Federal Credit Report Laws
4. Understand your Rights under the Fair Credit Reporting Act
5. Cover all Bases – Document Everything in your Credit Repair Request

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