Hello! One of my goals in life is to become a top notch financial coach, helping thousands of people gain financial independence. I want to help people quit their jobs, have financial security, reach their financial goals, and just becoming more financially literate. I believe one of the first steps to financial independence is to make sure you have great credit. I know Dave Ramsey says that credit is stupid and that you don’t actually need it, but I disagree. You need credit to rent an apt, get a cell phone, apply for certain jobs, etc. So one of the first ways I am going to help my clients is by starting with their credit and making sure that their credit report accurately reflects the truth. So how do you go about disputing your credit report? In my training, I am learning several ways to do this.
First, you ask the credit bureaus for a verification. According to the law, they have 30 days to dispute a verification and if they can’t come up with the evidence, then it gets erased from your report. I like the fact that the burden of proof falls on them. This is used as the first sweep and the disputes are more broad and all encompassing.
Second, you can formally dispute items on the report. This targets specific disputes. There is something specific that is inaccurate about the data. It also encompasses outdated and incomplete information. It can be something and simple as a name misspelling. This is a great way to remove negative items that are affecting your credit.
The third step is to send the credit bureaus a warning and asking for a reinvestigation. I believe this step is one of the strongest. This is where a lot of people give up when they hear no. But persistence can pay off. This step lets people know you are serious and won’t just go away.
Fourth step is intervention. This step is for open accounts and late payments. By sending a friendly letter showing that you have had a good history of payment, then you can usually get the one to two late payments off your account.
If you are starting to feel ignored report them to an agency. No one wants to deal with that. If you feel the need to leave a bad review or to tell your friends about it, then most companies don’t want to deal with negative press and they might be more likely to remedy a mistake and to fix the problem.
The next process to help with stubborn debt, is to ask for a written verification. This forces creditors to verify that the debt is valid.
The final strategy is to take legal action. If you are being ignored, they won’t correct something, or investigate you can file a lawsuit against them. You will need to hire a lawyer for this step.
After I go through these steps for my clients, the next step I would do is to educate them how to live a debt free lifestyle, how to prepare for the future, and how to make investments, and how to set themselves up to create passive income.