Dispute Derogatory Credit and Raise Your Credit Score!



Posted: Sunday, September 13, 2009

by Vincent Polisi
Finance the Dream

When a bank or other creditor is deciding whether to approve a loan they look very closely at the applicants credit score; it is one of the most important parts of the application. Your credit score is created through an analysis of how you have previously handled the credit extended to you. Unfortunately, more and more people are finding incorrect or incomplete information on their credit reports. This false information can lower your overall credit score and make it much more difficult to obtain a loan with acceptable terms.

To make sure that the information on your credit report is correct start by requesting copies of your file from the three main credit agencies: Equifax, Experian, and TransUnion. Each of these agencies collect and report information separately, so while one of them may have wrong data, correct information might be on a different one. It is still a good idea to make sure they all have the same data because creditors will look at all three scores in making a decision.

Once you receive the free credit report copies the next step is to look at each part very closely, even line by line. This report will show every creditor, the amount owing, and whether your payments are on time or late, or if the loan is in default. Make sure that everything on the report is actually your loan or credit card account, also making sure that all of your loans are indeed reported and that the available credit is listed. Each bit of this information is a part of your overall credit score.

The process of retrieving credit data and entering it into the agencys database is prone to mistakes, especially on reports that are not monitored frequently or for people that have common names. In view of the enormous amount of data received and the massive task of sorting it and then entering it into the agencys database, mistakes are virtually inevitable. This means it should come as no surprise to find at least some mistakes on a credit report.

Once mistakes are located, the next step is to appeal the entry on the credit report. All three of the primary credit reporting agencies have claims forms available on their websites. When filing a claim it is important to explain why the reported information is incorrect and to include any additional documentation that may be available to substantiate the claim. It is also worth noting that more recent items are less likely to be removed, than old items that have been included for a long time.

After an appeal or claim is filed the agency will spend the next 30 days or so investigating the situation. The information they discover will make the difference between having the data removed or not. Quite often the creditor will not reply to these credit investigations. When this happens the bureaus are required to remove any information included in the claim.

Vincent Polisi is the founder of Finance the Dream which offers rent to own houses and lease option homes throughout the United States. To find out more about how they can help you get into your dream home, please visit them at financethedream.com. To learn more about lease options , please visit his blog.

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