Have you ever noticed the importance of disputing comments from your credit reports? If not, then it is not too late. Continue reading to know why.
Imagine this scenario: You are applying for a car loan knowing that you have a good credit position. You have no doubts that you are qualified for it and it will easily be approved. Suddenly, the loan company declines your request and shows you a negative remark on your credit report. Now, you have to remove the dispute remark before they approve it.
There is one crucial point that you must consider. For negative accounts, the only suitable time to delete a dispute comment is when a lender requests for it. A dispute comment is directly related to the credit store. A negative account will most likely cause a huge decrease in the credit score if that dispute comment is removed. On the other hand, an account that has a positive history has higher chances of increasing its credit score when the dispute comment is successfully removed.
If you have a lot of questions right now, and don’t know where to start, we will guide you. The contents explained here are steps to remove dispute comments. Additionally, I am going to show you an example of an effective dispute letter. These are well-written and easy to understand.
Before we start with the steps, you have to have a background understanding about dispute comments.
Table of Contents
Dispute Comments and Appearance on Credit Reports
- An investigation will be conducted if you question the legitimacy of an account.
- Normally, this investigation takes 30 days after being marked as “disputed”
- Accounts that are “in dispute” are not taken into consideration by the Fico credit scoring systems. The specific account may show up on your credit report, but it would not contribute to your credit score.
- There are two possible scenarios after the 30-day investigation.
Scenario 1: The account is going to be deleted. Your mind will be at ease because the dispute comments will not appear in your credit report.
Scenario 2: The investigation did not lead to account deletion. The creditor will then ask the credit bureaus to put a “consumer disputes account” remark. This mark tends to artificially increase your credit score. However, lenders would want this comment removed so they can see the accurate credit score.
Different kinds of dispute remarks
Type 1: “Account Disputed”:
This comment does not contribute to the credit score. (This particular comment on an account does not contribute to the credit score) Lenders demand its removal. The account is either updated or removed after the re-investigation. The status can be changed to “account disputed”, making it not a factor of the credit score.
Type 2: “Account that was disputed now resolved”
This comment affects the credit score. It happens after the completion of the investigation. Banks and potential lenders do not mind this specific dispute comment.
How Can Deleting a Dispute Comment Improve My Score?
Removing a dispute comment on an account that has a positive history, no late payments, or no charge-offs may increase the credit score.
How Can Removing a Dispute Comment Decrease My Score?
Contrary, deleting a comment from an account that has a derogatory status may result in a decrease of credit score.
How Long Does It Take to Remove a Dispute Comment?
Things would go smoothly if you could contact someone from the credit bureaus by phone. It will take about 4 days as long as you’re in contact with them. It takes about 30 days if you contact them through mail or fax, so you might want to consider this.
Contacting The Credit Bureaus for Dispute Comments Deletion
The most effective way is to always call the bureaus for removing dispute comments. I always recommend my clients to do so. You may spend some time on hold during the process, but it often solves the problem. The list below contains the number that I have personally used to speak with a representative from different bureaus:
Press the following options after being asked for your SSN number and birth date: 2, 1, 2, 1. Problems may be encountered while trying to reach a live representative. Visit annualcreditreport.com to obtain a free report. Additionally, you can also check out freecreditreport.com to gain access to your Experian report. You will be provided with a special phone number and a report I.D. number on the report. You can use this information to get in touch with customer service much easier. Raise your concern about removing dispute comments for a specific account in the credit report. Don’t forget to mention that you no longer want to dispute the specific accounts.
Inquire about how much time it will take to remove the comments, expressing the need to expedite services quicker.
Equifax usually accommodates their customers through a live representative. However, hold times can be long. Speak to your live agent and request for a dispute comment removal. Tell the agent that you want to apply for new credit. It is also preferable to speak with the manager directly.
Inform them about your pending loan and that the dispute remark must be removed immediately. You can press 4, then 2.
If a Phone Number doesn’t work:
There are times when contacting a phone number will not work due to unforeseen circumstances. In this case, pull a credit report from www.annualcreditreport.com or a particular credit bureau website for alternative contact numbers.
Writing to Credit Bureaus to Request for Dispute Remarks Removal
Writing to credit bureaus is another alternative solution to reach them. You can refer to the sample dispute letter below to know how.
CREDIT BUREAU LETTER FOR REMOVING DISPUTE COMMENTS
Attach a copy of the following information:
- SSN card (or any document that shows the full SSN),
- Recent utility bill
- Identification issued by the state.
Date of Birth, SSN Number
RE: IMMEDIATE REQUEST TO MAKE CHANGES TO CREDIT REPORT
Good day, Ma’am/Sir,
I practice my right to request an update on the incorrect information found on certain accounts in my credit report. The “disputed comments” are to be removed for the accounts listed below. I would like to request a speedy transaction because I have loans past due because of the erroneous data in my credit report. Once again, the accounts under question had never been disputed, or are not being disputed at the moment.
***Choose the applicable scenario for this one.
The following remarks are to be removed:
Name of the Creditor
I reiterate this is a request to update, and not reinvestigate. Thus, I am expecting a fast service, which should be less than 30 days.
What To Do If They Refuse to Get Rid of The Dispute Remarks
When the steps above do not work and the credit bureaus refuse to remove the dispute comments. You should contact the creditor directly and ask to speak with someone who belongs to the ‘credit bureau department’. Ask for the manager if no one is available in that department.
You have to specify that you do not want to dispute the item anymore. Emphasize that you are requesting for a removal of the dispute comment from the bureaus.
There is a different scenario for accounts that have unpaid dues like a collection or charge-off. In this case, you want to carefully decide about calling the creditor. Calling them may lead to a restart of collection activities – another problem in itself. Therefore, refrain from calling the creditor unless you know that you are financially capable of paying off the debt. It is also important to check the statute of limitations in your home state before contacting them.
Final Step: Take Action!
Now that you are aware of the what’s, why’s, how’s, and when’s, it is now time to apply what you have learned. Remember all the things here and take action now!
Removing dispute comments is crucial to improve credit reports. If you need to remove dispute comments, take action now. At 007 Credit Agent, we help individuals solve credit issues. Contact us for a credit repair consultation.