Credit report disputes remove information from your credit bureau files if Experian, Equifax and TransUnion rule that your complaint is true. Your credit score comes from the data in your bureau files, so successful disputes affect the number. Your score does not change until the bureaus' investigations are complete and they decide in your favor.
Disputable Information
You may dispute any mistaken information in your credit reports, from wrong addresses and phone numbers to falsely reported payment delinquencies, but your credit score is only affected by the correction or removal of negative information. Scoring formulas do not use your demographics or employment data, so correcting personal and work information does not help or harm your score. The only dispute limits are a prohibition in the Fair Credit Reporting Act against making frivolous or irrelevant complaints, according to the Divorcenet website.
Important Factors
You improve your credit score when you concentrate most heavily on delinquent payment disputes, since late payments affect 35 percent of your score, according to the MyFICO scoring website. On-time payments reported by lenders as late make up the majority of credit report errors, Dayana Yochim of The Motley Fool website advises. Check your credit limits to ensure they are not under-reported, and make sure your owed balances are not overstated. Your score weighs the owed amounts against your available credit and penalizes you if your balances are too high.
Time Frame
Your credit score takes at least a month to change based on dispute results. The credit bureaus get 30 days to process your disputes. Then they must erase whatever information they did not directly confirm with the companies that originally added to your reports. Removal happens after the month-long investigation. Your score changes the next time a lender requests it after dispute process is complete, according to MyFICO, since it is calculated on demand and is based on your report contents.
Considerations
Your credit score goes up if you notice that accounts with positive histories are missing and get the lenders to report that data. You cannot add information by filing credit bureau disputes, but you can contact the relevant lenders and ask them to report the information. For example, you might have a credit card on which you keep a low balance and always make on-time payments. Your score goes up if you get the bank to report it to Experian, Equifax and TransUnion because timely payments and low credit card balances count for a combined total of 65 percent of the number, according to the MyFICO scoring website.
0 comments:
Post a Comment