Let us make one thing clear: credit disputes and credit report accuracy are in a relationship. You can use the dispute to make sure that your credit reports are updated and accurate. To be further assured, try reaching the best credit repair company in NYC.
However, there are various misconceptions that surround these credit dispute processes. If not dealt with, these misconceptions can lead to confusion and hindrances in your way to success. This is what this article is all about. Here, we will expose common mistaken beliefs about credit disputes. Providing clarity on this essential financial process starts now.
Misconception 1: Credit Disputes Are Difficult and Time-Consuming
First of all, let’s expose the most common misconception about credit disputes. It may be true that disputes may seem like difficult to understand. But this doesn’t mean these really are so.
The issue is that people usually are not aware of where to look for the reasons and solutions. There are streamlined processes in place to make the credit dispute easy to handle and less time-consuming.
You can start the dispute online and then check in for the results later.
Misconception 2: Disputing a Negative Item Guarantees Removal
If this were really the case, there would have been a lot of disputes and a lot of good credit scores. But that is not the case.
All disputes are investigated properly. The accuracy of information is considered before finalizing the result. A data furnisher is used to verify the data. If the information is not accurate on your side and accurate on the lender’s side, the information, be it negative, will remain on your report.
Misconception 3: You Can’t Dispute Accurate Information
This is really not true. You can definitely dispute against accurate information on the credit report. But, the catch is that this will be more challenging and tricky.
For example, say that you paid the debt, but the creditor reported it to be a charge-off. This is an inaccuracy, and you can dispute it. Here, the data furnisher will be responsible for checking and demonstrating the accuracy of the information.
Misconception 4: Creditors Will Retaliate Against You (for Disputing)
So, there is always a fear that if the inaccuracy is informed and reported, there are chances of the creditor to retaliate and impact the person who took the loan in a negative way. It means it may cause their credit score to decline.
This is not the land of bullies. Federal law is here to protect the rights of consumers regarding disputing inaccurate information. No retaliation is allowed by the creditors. The truth is that the lenders will have to respond to the dispute you opened. This is the power of law.
Misconception 5: You Can Only Dispute Errors Online
No way! Online dispute opening is actually an easy way to do it, but that is not the only way to do it. You can opt for mailing the dispute. Just write it down and send it. You can attach relevant material, like documentation of the past, to prove your point.
Do it online or through mail. Both methods are equally result-oriented.
Misconception 6: Disputing Multiple Items at Once is Ineffective
This is another of the misconceptions, and it may even sound just. But, trust us, it is not. If you find a lot of errors, you can open disputes for all of these. Add all details of the errors in the same dispute. No problem with that. All the credit bureaus are required to investigate each item individually, whether reported simultaneously or separately.
Misconception 7: Creditors Must Respond to Disputes within a Certain Time Frame
This one may sound wrong to dispute. Usually, the credit bureaus investigate disputes within 30 days. They are asked by law to do so. On the contrary, creditors are not obliged to respond within a specific time frame. This is solely on the creditor when he or she will respond. It can be really fast, but it can also be time-consuming.
All you can do is wait, be patient, and keep a persistent follow-up to remind them they need to respond.
There are a lot of myths and misconceptions regarding credit disputes. You may have a gut feeling about one, but you may not know about all of these. The crux of things is to be informed.
Understanding the credit dispute process is indispensable for preserving the accuracy of your credit report. When you ensure that all misconceptions are debunked, it will help you to continue moving on with confidence. In addition, you will not hesitate to take action to correct inaccuracies that may be affecting your creditworthiness.
It is your creditworthiness and your power to grow.
Remember that you have the right to dispute and try to find corrections for any inaccurate information on your credit report.