How To File A TransUnion Or Experian Dispute? Here's Everything You Need To Know

A good credit score is vital for your business and family since lenders trust these scores and it makes it easier for you to avail more loans in the future. According to Investopedia, lenders use credit scoring by companies such as Experian or TransUnion to determine whether someone would be able to repay the loan they have taken within the stipulated time. This allows lenders to assess the risk on the loan they give out and determine whether they should lend to a particular person, and how much they can lend as well. It also helps them calculate the best terms for loans and their interest rates to individual borrowers that will ensure the loan is repaid in full.

While a number of factors such as late or failed payments can lead to lower credit scores, inaccurate reporting by either your lender or the credit agency itself sometimes can lead to a drop in your score. In such cases, the Federal Trade Commission recommends that you get your error corrected in writing by contacting your credit agency. If you are unsure of how to do this, read on as this post will give you strategies to successfully file a dispute to your credit score.

How to dispute your credit score

Whether you have an Experian or a TransUnion dispute, you can file the dispute yourself online by filling up a form on their website. Both these firms have a similar process of addressing disputes. The agencies then contact your creditors after you have filed the dispute. The creditors make checks and verify the concerns you have raised, before giving the results of their checks back to Experian or TransUnion. If the verification reveals a mistake, the agency will immediately correct your scores and send a report of your new credit score.

However, this can be a tedious process if you are unaware of the nuances involved. The best way to have your disputes addressed is through experts from companies such as Credit Assistance Network. You can get a free consultation today and have an expert assess your credit report for inaccuracies. After the consultation, you can enroll in their program to get your credit report analyzed and find out how you can dispute your report effectively.

Whether you seek expert help or plan to do it yourself, these steps are what you need to bear in mind.

1. List out every inaccuracy on the credit report

It works best to go through a credit report with a fine-toothed comb when disputing it. If there are many inaccuracies, the best practice is to work with your credit repair expert and dispute all of them in a single letter. For this purpose, you can list out every inaccuracy in the report before analyzing them for whether any of it can be disputed. If you are unsure about the inaccuracies in your credit report, consult experts.

2. Pay off most of your credit card bills

One of the fastest ways to bump up credit scores before even having to go through a credit dispute is to pay off credit card bills substantially. This means you have to pay off somewhere between 95%-98% of your credit card balance. After these bills are paid, you can work with your credit repair expert to dispute the credit balance by mentioning you have already paid up your credit card bills substantially. When you go through an Experian dispute or TransUnion dispute, your letter will now confirm that you have already paid most of your debts, and your credit score will improve in about half the time it would normally take.

3. Make use of federal laws to your benefit

The United States government has made provisions to help you out when you are in the process of your Experian dispute or TransUnion dispute, and your credit repair expert can guide you through this process of understanding your rights.

Once you understand the system and how it works, you and your credit repair expert will have a better opportunity of raising your credit score quickly. You will also save a lot of legal hassle. Each state has its own laws for when creditors can pursue you for your debts. Work with your credit repair expert to look into your state’s law before your creditors would act upon any delinquency.

Credit Assistance Network can help you here, too. It makes use of its experience with consumer protection laws such as the FCRA, FDCPA, FACTA and the FCBA to create and dispute letters that can raise disputes for up to 45 individual items. Federal laws stipulate that the credit bureaus must investigate all disputes.

4. Avoid legal action by creditors

Most creditors may sue you if your debt is too high. Be careful with disputing exorbitant amounts of debt because your creditor can take legal action against you for that dispute. You can also talk to your expert and try to focus on your recent debts since they carry a higher credit score. FICO rules stipulate that any negative information within the first two years will have the biggest impact on your credit score. This means you will only need to use your Experian dispute or TransUnion dispute letter for whatever you owe in the last two years. Do not worry about that loan you paid late in 2010, because in 2020, that has a very limited impact on your credit score. Your credit score will go up if you focus on debts from the last two years alone.