Disputing Inaccurate, Incomplete, or Outdated Data on Your Credit Report

1) Dispute outdated or Incorrect Information:
If you find incorrect or outdated information on your credit report these negative notations cannot be more than 7 years old. Bankruptcy notations may remain on the credit report for up to 10 years.

When disputing incomplete or outdated information state what your desired result is and provide documentation. Mail everything certified mail, return receipt requested.

For information that the consumer believes is inaccurate or incomplete , the credit bureau has 30 days to verify the information with the creditor to ensure that it is correct. If the creditor cannot document the truthfulness of the disputed information, it must be deleted from the credit report.

It is often necessary to dispute same item with all credit reporting agencies that have recorded the negative notations. Credit beaus do not communicate or share information and making correction on one report does not mean the correction will appear on the report of a different bureau.

2) Using 100 Word Consumer Statement
If the creditor asserts that the notation is correct, it will remain on the report. You should continue to address the issue directly with the creditor. You have the right to have included on their credit reports a statement no more than 100 words explaining the disagreement.

The statement becomes the part of the credit report and will remain there as long as the disputed item is on the report. Many credit decisions are based on the credit score and often lenders do not view your statement.

3) Develop a plan to manage your money.
To reduce the chance of future problems with credit, it is wise to analyze your spending habits, create financial objectives, and have priorities when spending.

4) Pay with cash
In order to develop better spending habits, you have to start reducing you expenses. To accomplish this, try to pay everything with cash. When paying with cash you are forced to limit your spending to only what you have on hand or in your checking account.

5) Apply for Secured Credit
Some lending institutions can give you a credit card if you have deposit a set amount with them. These funds are placed in reserve and you can get a card with a limit equal to that was placed in reserve. Make sure the institution reports to the credit bureaus.

6) Apply for Unsecured Credit
It is much easier to get a credit card from a department store than it is to get a card from a national creditor, if you explain to the local store the reason for the previous poor credit and demonstrate that you are now finically responsible.

7) Obtain and Use Debit Cards
Apply or request ATM card that will also function as Visa/MasterCard. The card is connected to your checking/saving account and the purchases are automatically deducted from these accounts.