What is a Statement of Dispute?

Your credit score and the information on your credit report can impact whether you can get a loan or a credit card and whether you can get the lowest rates possible. If the information on your credit report isn’t accurate, it can have a negative impact on your borrowing ability. You have the right to dispute errors on your credit report by filing a credit dispute letter. If the credit dispute letter is unsuccessful, you can file a statement of dispute.

Credit Dispute Letter

Write a letter to any of the credit bureaus that are reporting inaccurate information and request that the errors be removed. The credit bureau will investigate the information you provide, and if they agree that it was an error, the information will be removed. Creditors aren’t required to report to all three credit bureaus, so it’s important to check what’s being reported by each of them.

Items That Can Be Disputed

There are many different errors that you might see on a credit report. Examples include:

  • A payment shows that it was paid late, but you can prove it was paid on time.
  • An account is listed that doesn’t belong to you.
  • Your name is spelled wrong, or there’s an error in your address.
  • An account is reported twice.
  • A bankruptcy is listed, but you’ve never filed for bankruptcy.
  • A legitimate bankruptcy hasn’t been removed after seven to ten years.
  • A foreclosure or collections account hasn’t been removed after seven years.

It’s important to note that you can’t dispute every negative item on your credit report. You can only dispute items that aren’t reporting correctly.

What to Include in a Credit Dispute Letter

A credit dispute letter should include a copy of the credit report that has an error with the erroneous information highlighted. Include your name, address, social security number and contact number along with any documentation that shows that what you’re saying is true. The credit bureau is required to investigate your claim within 30 days of receiving it.

What if the Error Isn’t Corrected?

If the creditor rejects your dispute, the information won’t be removed from your credit report. If you disagree with the results, you have the right to file a statement of dispute. What is a statement of dispute?  It’s a 100-word statement that you can add to your credit report which allows you to tell your side of the story

You can make a statement that you disagree with the way an item is being reported, or if you’ve been a victim of identity theft, you can state that. Your statement can include information of why you fell behind, such as job loss, medical problems or a natural disaster. Making a statement that you forgot to make your payment isn’t helpful and reinforces the idea that you’re a bad credit risk.

Expert Help with Credit Disputes

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