Death in the family, illness, loss of a job, or divorce can take a great toll on our daily lives and finances. If tragedy strikes and you are unable to afford your monthly mortgage payments and find yourself falling behind, you may be able to modify your home loan to catch up and avoid foreclosure.
How to Dispute Errors on Your Credit Report
Every applicant for a KC home loan should know the three basic steps to building good credit:
- Getting a credit card
- Using your credit card responsibly
- Disputing credit report errors
However, many people do not know which steps to take to dispute credit report errors. This process may seem tedious, but is relatively straight-forward. Most importantly, disputing credit report errors can be essential in helping you obtain a KC home loan.
Obtaining Your Free Credit Reports
Getting a KC home loan is already an expensive process; take advantage of all the free help you can get! Every person has access to one free copy of their credit report from the three credit bureaus:
Don’t exhaust these resources all at once as you may need another copy in the future. If one company investigates and approves your dispute, they are required to notify the other bureaus.
Gathering Your Proof
Mistakes do happen, but you may need proof to convince credit bureaus there has been an error on your credit report. For instance, if you have remedied a delinquent account and that information has not been noted on your credit report, you will need to obtain proof from the debt collector to dispute that error.
Writing a Dispute Letter vs. Disputing Online
While disputing a credit error online is quick and convenient, it is more likely to be declined than a hard copy of a letter. Online disputes will not allow you to send the proof you have gathered for your case. However, sending your credit report dispute by mail enables you to send that documentation. If you choose to mail your dispute, be sure to:
- Send the letter by certified mail
- Save a copy of your dispute and proof for your records
Don’t Forget to Follow Up!
Credit bureaus are required by law to investigate your claim within 30 days of receiving it. If at the end of this period you have not heard back from the bureau, contact them immediately. They are required to report the results of their investigation back to you and provide an additional free copy of your report if it has been changed.