How can you handle a credit score dispute? Here are 5 effective strategies

Your financial well-being depends on having an accurate credit report. Errors can harm your credit score and impact your potential to secure loans or credit cards.

What is a credit score dispute?

A credit score dispute is a process through which you can raise disputes or inaccuracies in your credit report that may negatively impact your creditworthiness. The errors are primarily related to false personal information, unauthorized accounts, or erroneous payment history. To dispute, you must write to your respective credit bureau aided with supporting documents to confirm the error.

Further, the bureau will then examine your complaint, normally within 30 days, and correct the report if your complaint is fair and legitimate. Resolving disputes early improves your credit score and safeguard your financial integrity. That is why checking your credit report periodically aids in the detection of and resolution of errors at an early stage.

Five good approaches to manage a credit score dispute are as follows:

• Get and examine your credit report: Start by obtaining your report copy. Carefully review it for errors such as incorrect personal details, unfamiliar accounts, or faulty payment history. Document any errors and gather supporting documents, such as bank statements and receipts.
• Gather and organize supporting documents: Document all that is relevant to support your dispute. Place inaccuracy on your credit report and collect evidence demonstrating inaccuracy. Make copies of your documents to have your case at hand.
• Raise dispute with the credit bureau: File your dispute online, by mail, or through credit bureau mobile applications. Clearly indicate the error and attach all documentation supporting it. If in doubt, consider reaching out to the customer service department of your respective credit bureau. Credit bureaus generally take 30 days to investigate and are required to notify you within five days of completion.
• Contact the furnisher of the data directly: Your lender and creditors are the institutions that send your information to your respective credit bureaus. Notify the business or creditor who caused the error. Ask them to verify the error and have it fixed with the credit bureaus. Correcting the origin of the error prevents repeating the error on your credit report.
• Check progress and follow up from time to time: Monitor your status of dispute and review your credit report for any changes or alteration. Credit bureaus take 30 days and the banks generally take 45 days to report. If there is a recurring issue, you can attach a statement of dispute to your credit report.

Implementing these simple yet healthy habits and properly monitor your credit profile. These steps will ensure your financial health remains intact in the long run.