Will Disputing an Item Temporarily Raise Your Credit Score?

The Fair Credit Reporting Act requires that credit rating agencies investigate all disputed items and correct any errors, according to the Federal Trade Commission. Disputing any negative item on your credit report is a common tactic suggested by nefarious credit repair agencies to raise your score. This, however, is a temporary solution to long-term credit problems.

Identification

Disputing an item will temporarily raise your credit score because credit rating agencies must remove the negative item while investigating the veracity of your claims, according to Fox Business. Once the investigation is complete, the credit rating agency puts the negative mark back on your report if it deems the item valid.

Considerations

Credit rating agencies know the common credit repair tactic of disputing any black mark in the hopes that enough requests will backlog the investigation process or the agency will remove the item because it is not cost effective to review it, according to My Credit Group. If you try this tactic, the agency may have the right to ignore your disputes as frivolous.

Benefits

Disputing an item can permanently raise your score if it is a legitimate error. About 70 percent of credit reports contain at least one piece of erroneous information, according to Bank Rate. If the credit rating agency ignores your request for more than 30 days, it will have to remove the item regardless of its legitimacy.

Tip

Nothing can replace managing your finances responsibly. Disputing items related to an unpaid debt could give the company motivation to renew attempts to collect on it. Start raising your score now by paying down debt, setting a budget and paying your bills on time. Avoid credit repair companies that claim they can eliminate negative marks or give you a new identity.