If you're faithfully monitoring your credit reports, you may find some inaccurate information has been reported to the Big Three. You can always file dispute forms with the major credit bureaus, but you might be wondering whether you should bother. Will it make any difference? You might be surprised.
Disputing Information
Each of the three major credit bureaus provides a form you can either file online or by mail to dispute any information listed on your credit report. Once you submit the form, the credit reporting company has 30 days to investigate the disputed information.
Effects
Credit reporting bureaus are quite busy and may not have the time to investigate disputed information. Should the time pass without an investigation taking place, the bureau is required to delete the negative information. This is a great advantage for you, but don't get too excited. The creditor who reported the negative information can always report it again, and you'll be back at square one.
Warning
One of the most maddening things about the credit reporting industry is that the credit reporting company will always take the word of the creditor over the word of the consumer. So if the reported information is inaccurate (or even a flat-out lie), whatever the creditor tells the bureau is what will appear on your credit report. Your only options are to keep disputing the information or sue the creditor. Since creditors have much deeper pockets than most consumers, filing a lawsuit against them is out of the reach of most of us.
Considerations
Negative information may remain on your credit report for seven years. Bankruptcies may remain on your report for 10 years. Each of the three major credit reporting agencies is a separate entity, so disputed information removed from one report does not mean that information will be removed from all three. You must file a dispute form with each bureau.
Significance
Having an accurate credit score is becoming more and more important now that companies other than those offering credit are relying on credit scores to make decisions about consumers. For example, car insurance companies charge consumers with lower credit scores more money for coverage and potential employers can refuse employment to consumers with lower credit scores. These discriminatory practices are currently legal, and until legislation takes place to prohibit such behavior, all a consumer can do is continue to monitor his credit reports and dispute inaccurate information.
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