help! my credit report dispute got denied! what do i do now?
You found an error on your credit report and tried to correct it. You might have even spent hours on the phone to get ahead of it. But then, what seemed like a straightforward appeal to you, was nixed and your dispute got denied. Now what? Does it mean you have to live with a ding in your credit that doesn’t even belong to you? Actually, there are more things you can do.
Unfortunately, the application is denied because your CIBIL score is too low. You pull your credit report and quickly notice several delinquent accounts you had no prior knowledge of and a really DPD that’s made its way to collections.
After filing a series of formal disputes and spending the next 30 days patiently awaiting a response, you’re even more disappointed to learn that the credit reporting agency didn’t exactly rule in your favor. The fraudulent accounts were removed, but the DPD is still there and it’s sinking your CIBIL score. Looks like your dreams of owning that fancy car won’t become a reality anytime soon. If you’re in a similar situation, I feel your pain and know firsthand that fighting the credit report dispute battle can be a time-consuming nightmare. But rest assured that all hope isn’t lost.
Why are credit error disputes rejected?
The answer to this question isn’t really cut and dry. Our credit report errors blog post mentions nearly 70% of consumers still found inaccuracies on their reports even after they filed a dispute. This is because not every credit report error reported is guaranteed to be removed and there may be instances when only a certain number of errors can be reported. For example, if a consumer is disputing multiple items at once, only some of them might be corrected. In other cases, disputed information might be reinstated after a successful dispute. Similarly, the credit reporting agency or creditor might simply believe the information to be correct and thus leave it on the report. Some inaccuracies, like wrong updation errors, where partial Pan card number matches cause inaccurate items to stick to credit reports, may also be challenging to remove. Because of the nature of credit reporting, such errors might require multiple attempts to remove.
If errors remain on your credit report …
Make sure it’s not fraud or human error
Some changes in your credit report might actually be the result of fraud or small, but overlooked charges which might have slipped past you. Either way, you’ll want to make sure you thoroughly determine the source of any inaccuracies so that you take appropriate action sooner rather than later. You should also take this time to get any documentation together that can strongly prove or support your case. Remember to make copies and not send any originals out, as there is a chance that the documents could be misplaced, which means you’ll have to locate them again (if that’s even possible).
Contact the credit bureau you filed your credit dispute with
You can consider reaching out to the bureau you reported the inaccuracy to, but keep in mind this may or may not be helpful. Resubmitted disputes, especially without changes in documentation, can be immediately flagged as frivolous and may make your situation worse. In some cases, it might be better to pursue another course of action before submitting another request or reaching out to a bureau.
Modify your credit report with a statement
Disputes can take a long time to be acknowledged. If you feel your opportunities for credit approval has drastically been affected by hard-to-scrub inaccuracies, you can consider adding a 100-word statement to your credit report. This can be used to as a way to notify lenders of your ongoing credit dispute(s). While this statement won’t solve the problem – it’s not even clear if all lenders read such notes – it still makes sense to use all of the options available to you. Make sure, however, that this isn’t the only solution you try.
Ask for help from a credit repair professional
If you cannot address the issue on your own, it might be useful to seek out the help of a credit repair service or a credit professional. They can usually guide you to the most optimal set of actions you can take to ensure that your problem gets addressed and work with the credit bureaus on your behalf.
For a number of individuals, they might have to stay in correspondence with credit bureaus for an indefinite amount of time before their issue is resolved. Certain actions like paying off the reported/accurate debt, while seemingly easier, might not be the best response as inaccuracies will still likely remain on your report. As difficult as it might be, it may make more sense to just stay the course and continue communications with both the credit bureaus and credit furnisher reporting the inaccuracies.
Here are some tips for handling a dispute.
Know that paying the EMI’s usually doesn't simply erase the ding from your credit report. If this happened, many many people would have a perfect credit report and it wouldn't be a very useful tool to determine past performance.
Contact the creditor directly. Sometimes the best way to resolve a dispute is to discuss it, head on, and this is one of those cases. If consumers feel the item(s) are in error, they should contact the creditor(s) directly to find out why they did not agree to remove them from their report. This is because the credit bureaus don't have direct access to all of the account's data that you and the lender have.
Get supporting documentation. Credit bureaus give people the option to file their disputes online and by mail. And they've retooled the technology to ensure that creditors review the paperwork.This effort has been welcomed by lenders who want to see this additional information in order to resolve their customer's dispute. Scan or copy all information supporting your case, and send it to both the lender's address supplied on the credit report and all three credit bureaus. If you have multiple errors on your credit report, send multiple letters and evidence to the bureau(s) in question.
Ask for a statement to be placed on the report. "The statement should be specific to the dispute of credit information. You also can ask the credit reporting agency to provide your statement to anyone who received a copy of your report in the recent past. You might have to pay a fee for this service. Also, if you tell the information provider that you dispute an item, a notice of your dispute must be included any time the creditor reports the item to a credit bureau. (It's important to note, however, that dispute statements can affect your CIBIL scores positively or negatively, depending on how they appear on your credit reports, so it's a good idea to keep an eye on your credit after requesting that a statement be added.)
While you're waiting for your dispute to be settled, you can work on improving your creditin other ways. For instance, you can pay down high credit card balances, limit new credit inquiries and re-establish your payment history by making all loan payments on time.
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