DIY Credit Repair
What is Credit Repair?
Credit Repair is the process of disputing inaccurate information on your credit report with the credit reporting agencies. The key to successful DIY Credit Repair is to only dispute items reporting erroneous information.
DIY Credit Repair: How do I dispute information on my credit report?
There are multiple ways to dispute the information, but the best methods are online or by mail.
If there is an item you want to dispute you can go directly to the credit bureau and dispute the account online with them. You can also mail them a letter disputing the item but be sure to include
- The account information like the name of the creditor and account number; and
- Identify the information that is reported in error, and
- Identify how the information should be corrected.
For example, if you see a collection account that you already paid but it is still reporting that you owe them money you can write something like:
“I recently reviewed my credit report and saw a collection account with ABC Collection, Account Number 1234567, that is reporting the account as open with an unpaid balance of $657. I have already paid this debt and the balance should be reported as closed with a $0 balance. Enclosed is a copy of proof of payment.”
The credit bureaus are required to respond within 30 days. Taking the extra time to tell them what is wrong with the account, and how you want it fixed will speed up the credit repair process.
Can I dispute Collections on my credit report?
Collections and Charge Off accounts can be disputed but be careful.
When an account is more than 180 days late on payments the creditor may “charge off” the debt or transfer it to a third party for collections. Either way, you still owe them the money.
When you see these accounts on your credit report and you dispute them, the creditor will usually “validate” the debt. However, the dispute can trigger collection activity. When you dispute information on your credit report you generally verify your current address. This information is updated on your credit report and the creditor is also notified. Accordingly, you may receive letters from the debt collector or even be served with a lawsuit.
When you have lots of collection accounts disputing them will help you determine who is still trying to collect. Credit Repair will assist you in getting rid of old collections that are no longer legally enforceable but still lingering on your credit report.
You should consult with an attorney about your potential liability before you start disputing collections and charge offs.
Can I dispute Late Payments on my credit report?
Yes, but it can be difficult. You are only late for credit reporting if you are more than 30 days late. If you were not late you can dispute the late payments with the credit reporting agency and the creditor. You will need to provide evidence that you were not late.
If you have multiple late payments or are late for several months in a row, you will need a copy of your payment history from the creditor to prove that you were not late.
If you were late, then the reporting is accurate, and the late payments are not likely to be deleted. You can contact the creditor reporting the late payments and request that they delete the late payments in a “good faith dispute.” However, some companies simply will not delete these late payments, no matter how many times you dispute them.
Keep in mind, that late payments only hurt your credit score for about 24 months. So late payments from years ago may not be worth disputing.
Does DIY Credit Repair work?
Yes, when you do it right. In general, it should only take 90 days to complete credit repair.
However, most credit repair companies dispute every item on your credit report, regardless of whether there is an error. This is why some accounts are not deleted. The account is not deleted if it is reporting accurate information.
How much will my credit increase from credit repair?
It depends on the errors. Some people see an increase of 5 or 10 points. But for people with significant errors like recent late payments or pages of old junk collections it can be 50 or even 100+ point increases. Results vary.
You can dispute information on your credit report on your own either online or by mailing a letter to the credit bureau. Just remember to be specific and include proof if you can. The process should take less than 90 days.
We are a consumer rights law firm helping people with credit-related legal issues. If you need more information you can book a free consultation with a credit attorney. You can call us at 480-907-6088 or book online at azclg.com.