Credit scores can affect the loans we are eligible for, the rates we get, and even the amount we end up spending in the long run on big ticket items. Because of this, it is important to always know what your credit report is and how you can improve it. If you happen to get a bad credit on your credit report, you can dispute it. These are the 5 times you should always dispute bad credit.
Dispute the bad credit if there is an error in the credit file.
This can mean anything from the wrong name being listed, the wrong address, or even an incorrect amount being charged. If the creditor does not have these very basic things listed correctly then there is a high chance that their records are not good and that the charge is not accurate. If this is the case then they may not be able to prove that the debt is yours and it will be removed from the credit report. This tends to be the case most often with older debts because they might have been bought and sold multiple times so it is best to start with those debts first and check to see if all of the information that they have listed is correct.
Dispute the bad credit if the debt is past the federal credit reporting period.
There is only a certain amount of time that debts can be listed on your credit report. Once that time has lapsed, they have to be removed and if they have not been then you can dispute the bad credit and have it taken off of your credit file. This holds true even if it is a debt that you still owe. Most debts have a federal credit reporting period of 7 years but some can be up to 10 years. To find out how long each particular type of debt can stay on your credit report you can contact a credit repair counselor or credit repair specialist.
Dispute the bad credit if the debt is listed incorrectly.
Let’s say that a debt is listed at 30 days late when it was in fact only 5 days late. If you have proof of this, then you can dispute the bad debt and help to bring up your credit score. While having a missed payment of any kind can still hurt your credit score, it hurts a credit score much less if a debt is 30 days late rather than being 90 or 120 days late. Keeping accurate records of your debts and payments can help you to quickly catch any debts that are listed incorrectly and can mean helping your credit score.
Dispute bad credit if you are a victim of identity theft.
Having someone steal your identity can mean that they have opened up accounts in your name without your permission. This can have a very negative impact on your credit score. If you file a report with the police, you can dispute any bad credits that occurred as a result of identity theft.
Dispute the bad credit if you think the debt might not be yours.
If you see a debt with a company that you are not familiar with listed on your credit report and believe that the debt isn’t yours, then dispute it. The creditor will have to be able to verify that the debt is yours or they will have to remove it from your credit report. It is your consumer right to dispute bad credits that you do not believe are yours so make sure you keep an eye on your credit report to catch these false credits as soon as they are reported.