Understand The Ins & Outs Of Disputing Credit Reports

It’s no mystery that credit scores reflect and play a key role in the financial well-being of individuals and families. High credit scores make it easier to qualify for big ticket purchases such as homes and cars, and often allow a borrower to access funds at the most favorable terms available. We also understand the importance of frequently checking on credit reports, to make sure that information is factual and up-to-date. Remember to check all 3 leading credit bureaus’ (Equifax, Experian, TransUnion) reports on a regular basis, document your challenges thoroughly and defend your position.

However, as noted in this Team Move blog post, credit report challenges can also have 3 types of unintended consequences you should be aware of.

First, just as insurance companies view individuals who file frequent policy claims with suspicion, a profile with several disputes can have a negative impact during activities such as applying for home mortgages. The takeaway here is to make sure the claims you make are legitimate, documentable and meaningful. Challenging credit line item that you may not be able to prove, especially for a small amount of money, may not be your best course of action.

Second, when a credit line is in dispute, the disputed items are not factored in to the credit score, so it is possible a potential borrower’s score will suffer from reliance on a report that does not have a full reflection of the person’s credit history.

Third, if an item is disputed and not successfully removed, there is a good likelihood that the dispute attempt will remain in the person’s files. Your best course of action here is to reach out directly to the credit bureau, specifically note that you are no longer challenging an account on your report and that, as a result, you would this information removed from your record. In most cases, the bureaus will work with you delete your remark.

Get more details on how to navigate the process of credit disputes in this OVM Financial blog post. Once your disputes have been successfully removed, contact Sanford’s Team Move office at 919-777-0114 to discuss pulling your credit for a home loan approval.