In a survey conducted by OppLoans, 46% of millennials said they felt “held back by” their credit scores. Whether you are trying to stop an account from going to collections or straighten out mistakes on your credit report for your next venture, it’s essential to understand the process of a credit dispute.
A credit dispute typically takes thirty to forty-five days, depending on the situation. You may find inaccurate information when reviewing your reports and want to submit a dispute claim. Under the Fair Credit Reporting Act (FCRA), a credit bureau has approximately thirty days to investigate and resolve any inaccurate items from your credit report.
Checking your credit and fixing or disputing any errors you find is one of the easiest ways to repair your credit; however, this can be difficult to do on your own. Well-trained credit analysts at The Phenix Group offer the best credit repair in Miamiand can create an individualized credit repair plan just for you.
How to Submit a Credit Dispute
Here are the first few steps to starting a credit dispute claim:
1. Personally Review Your Credit Report.
A credit report contains information about how you manage and use your credit. Equifax, Experian, and TransUnion are the three main credit bureaus, and your credit history will likely be listed on all of them. You can request a free copy of your report through AnnualCreditReport.com.
Your credit report calculates your credit score and informs you about which items are impacting your credit. Go over your most recent reports and note any discrepancies or inaccuracies you see. Working with a credit repair group can be especially helpful here, as these reports often contain slightly different information. Credit professionals can help you navigate this process.
2. Prepare Your Dispute and Submit
Next, you will need to compose a dispute letter to the credit reporting company. In this letter, you must specify the reason you are disputing an item or items on your credit report. You need to include information that is inaccurate—whether it’s a false recording of a missing payment, an incorrect account balance, or any other discrepancy. Other issues could include an item that should have aged off the ten-year report, or dates being inaccurate altogether.
In your letter, you need to be as detailed as possible–include any evidence you have that supports your dispute. This can be a lengthy process on your end because it requires labeling your evidence, explaining how it pertains to your claim, and articulating your argument in a comprehensive way. Credit and finance professionals at The Phenix Group can guide you through this process so that nothing falls through the cracks. The last thing you want to do, after submitting a dispute and waiting nearly a month for a decision, is to realize you need to resubmit because of a minor error or omission.
3. Credit Bureaus Investigate Your Claim
Credit bureaus have thirty days from the time you submit your dispute claim to complete an investigation, but there are a few exceptions that could extend this timeframe to forty-five days. However, this also does not mean it will take the full thirty days–you could receive a response sooner.
Keep written proof of when the credit bureau received your dispute. Typically, you will receive a notice that will inform you of the results from the credit bureau around five business days after they have completed the investigation.