Expedite Credit Report Disputes

If you have experienced trying to dispute an error in your credit report or score, you know how hard it is to finally correct it. From the misunderstandings with the agency to the length of time it takes to apply the necessary changes. There are three things that you can do to expedite the process if you are disputing an error now.

The first one is to specify the correction and focus only on it. Be sure that you are clear on what you want corrected and do not deviate from the matter at hand. The more straight-forward you are, the less chances of confusion between you and the agency. Second is to provide all documentation that will substantiate your case in the dispute.  This will save time on having to correspond back and forth. Last advice to expedite the dispute process is to e-mail what you can. As we all know, e-mail is much faster than snail mail. So as long as you can send all supporting documents through e-mail, you can save days over snail mail in reaching the credit bureau.

What To Do After Credit Application Has Been Rejected

So you applied for a loan to further your studies and hopefully improve your financial income after graduation or you applied for a business loan so you could finally turn your dreams into reality. But getting a letter from the creditor explaining that you have been rejected can be disheartening. The first misstep is sending out more loan applications. After all, the more applications you send the more chances you have of getting one, right?

In this case, the motto to just keep on trying does not apply. In fact, it can damage your reputation and diminish your chances of getting granted a loan even more. So whatever you are thinking, stop and read on. Find out what you should do before apply for yet another loan application.

Learn from rejection

Find out why you have been rejected. If the creditor didn’t include any explanation in the rejection letter, although they should, contact an agent from the credit company and ask for the reason why. They should be able to tell you exactly what. If It is because of your credit report, there are many things that you can do to improve your credit report and score. And if it is, you are entitled to one free credit report.

Get a copy of your credit report and study it. Make sure that all information is correct, that all accounts are indeed yours, and all missed payments are true. If you find any errors, ask the agency that provided the creditor with your credit report to fix the error and update your records.

Double check

Double check your application form. Make sure that everything in the application form is true and correct. Be sure that you have included information about you that supports your ability to make payments on time.

Talk to your creditor

A late payment is one of the biggest factors that contribute to a low credit score. If you have missed a few payment deadlines but wish to improve your score, you can ask your creditor to erase the missed deadlines from your report in exchange for a full payment or an advance payment.

Sell yourself

Have you been with your employer for five years now? Have you had your credit card for ten years? These are things that can increase your credit score so make sure that they are included in your credit report along with other information that can help prove that you are financially responsible.

One at a time

Many consumers apply to different loans all at the same time or in a short period of time. Make sure that you allow intervals between applications. Remember that all these applications and rejections for loans are reflected in your credit report. When a creditor sees that you have submitted many application forms in a short span of time, it raises a color guard of red flags.

Free Credit Report Denied Credit Privilege

Everyone has the right to a free credit report (when) denied credit by the lender. This is made possible by the Fair and Accurate Transactions or FACT Act. According to the law, the individual who applied for the credit but has been denied should be sent what is called an adverse action letter which is basically what will explain the reason or reasons for the decline in the application.

Get a free credit report denied credit

The adverse action letter can come in one of three ways; over the phone, by mail or orally. It can be credit free credit report denied creditbased or non-credit based.  A credit based adverse action letter is sent to those who have been declined the credit application based on their credit report and score. Reasons will be given on why you have been rejected as well as include the credit bureau where the company obtained the credit report. It will further explain that the credit bureau is not involved, in any way, in the decision making. It will include information on where you can get the free credit report (for the) denied credit within sixty days. You are only entitled to claiming the free credit report (for) denied credit from the credit reporting company where the lender obtained the credit report. Because errors in credit reports are possible, the adverse action letter will give you the chance to correct inaccurate credit report information should there be any.

A non-credit based adverse action letter is when you have been rejected the credit application for reasons other than your credit report and score. It will state the reasons for the rejection and provide you with an Equal Credit Opportunity Act or ECOA. When you receive this kind of letter you are not entitled to a free credit report (for) denied credit.

Getting rejected from a credit application can be discouraging. The first thing that you should do is take a good look at the adverse action letter and find out why you were rejected. Avail of the free credit report (when) denied credit if the reason for your rejection is credit based. The credit report and score that will be given to you is the very same thing that the lender was provided with. Make sure everything in it is accurate.

Once you have determined what the reason is, try to improve your credit record and only apply when your score has improved. It is not advisable to hop from one creditor to another in the hopes of getting lucky and getting a loan granted. This is a big no-no since application for credit, whether you have been rejected or accepted, will appear on your credit record. Consecutive applications and subsequent rejections will only damage your record and make future creditors think that you are indeed having a hard time getting a loan and will be reluctant themselves.

So take advantage of the free credit report denied credit privilege and build your credit report from there.



Fixing Errors In Credit Reports

One in every twenty Americans have errors on their credit report and score, according to the Federal Trade Commission. This is the number one reason why everyone is advised to check their credit reports at least once a year and even better if you do it quarterly. Besides, checking it once a year won’t cost you any money since everyone is entitled to a free credit report once every twelve months.

There are many reasons why errors in one’s credit report happen and could be caused by either the individual himself or a clerical error from the end of one of the bureaus or lender. Two of the most common errors being fraudulent activity or mixed up information. It isn’t uncommon to confuse Social Security numbers and even names. Often times, information on the part of the lender have been entered incorrectly.

Act fast

The minute you detect an unfamiliar or wrong information, you must contact both the bureau and the credit reporting company that provided you with such information. The sooner you alert them of your dispute the better. You can send your supporting documents either through mail or e-mail depending which one is available to the company that you are dealing with. Snail mail however is the most common. Before you send out any documents though, make sure that you call the agent’s dispute hotline to make sure that you secure all necessary information as well as obtain a report confirmation number, if they do provide those.

What supporting documents?

When trying to dispute something in your credit report, you must provide proof on why the information is incorrect. Depending on the company and your type of dispute, the most common requirements to send through mail are your information such as complete name, address, Social Security number, etc. If you have an account number for the specific account that you are disputing, you might as well include it too. Secure a copy of the credit report highlighting the information that you would like to correct. Lastly, include a letter explaining your concern. Keep a copy of these documents for yourself.

Once your dispute has been rectified, the bureau concerned should provide you with a fresh copy of your credit report and score for free even if you have already availed of your free credit report for the year.

Woman sues Equifax

A resident of Marion Country, Oregon named Julie Miller found errors in her credit report from Equifax, specifically her Social Security number and some false collections accounts. She has tried for years to have Equifax correct these information to no avail. They have repeatedly told her to rectify the information with her lenders or creditors. So Julie Miller decided to sue the company in federal court. In 2013, she won the trial and was awarded $18.6 million.