Monitoring your credit reports carefully to make sure the erroneous information is removed, is imperative
Deerfield Beach, FL (PRWEB) November 30, 2011
Debt Management Credit Counseling Corp. http://www.dmcconline.org, a nonprofit credit counseling organization (“DMCC”), announced today they provide tips for consumers to maintain accurate information on credit reports in order to receive the best credit rating, services and interest rates from lenders. As more consumers are struggling to find employment, it is their credit reports that may distinguish two candidates apart. It is estimated that 50% of all consumer credit reports contain at least one error. Many errors result from the incorrect reporting from creditors to the credit bureaus, including nonpayment or late payments, misfiling by a department store credit line, a mix up between family members with the same name, and accounts opened without the consumer’s approval by someone committing identity theft.
To start the process of removing inaccurate information from a consumer’s credit reports, DMCC first recommends obtaining the three free credit reports from AnnualCreditReport.com. This is a secure site where consumers can receive a free credit report from each of the credit bureaus, Experian, Equifax and TransUnion once every twelve months. “Be weary of other sites offering free credit reports. Typically there is a catch such as having to sign up for a service” states Jessica Stokes, Education and Research Coordinator for DMCC. If errors are found, consumers should write a letter to the credit bureaus stating what specifically needs to be removed. Copies of this letter need to be certified mailed with return receipt requested to the creditor who reported the inaccurate information and each of the credit bureaus reporting this erroneous information.
“Monitoring your credit reports carefully to make sure the erroneous information is removed, is imperative,” stated Stokes. “Consumers need to place importance on following up on all disputed items to make sure when their credit report is subsequently pulled, creditors will be looking at accurate information.” Stokes teaches about the importance of maintaining records for everything. “Keep copies of all mail relating to the situation and write down names and phone numbers”. DMCC also advises to be patient. The dispute process can take months as the credit bureaus deal with millions of disputes on an ongoing basis. Consumers planning to finance a large purchase are advised to order their credit reports at least 90 days in advance in case there are errors that need to be corrected. For a sample letter to send to the creditors and bureaus, visit DMCC.
It is important to note that only inaccurate information may be removed from credit reports. It is illegal to dispute information that is correct. Consumers can read about their rights to dispute inaccurate credit report information under the Fair Credit Reporting Act. Consumers with credit card accounts that are past due may want to consider enrolling the accounts in a debt management plan provided by a credit counseling agency licensed in the state they reside. Debt management plans typically provide lower monthly payments for consumers and some of the major creditors will re-age past due accounts and report them as current to the credit bureaus after the first couple plan payments are made.
About Debt Management Credit Counseling Corp.
DMCC is a nonprofit 501(c)(3) public charity committed to educating consumers on financial issues and providing personal assistance to consumers overextended with debt. Education is provided free of charge to consumers via seminars, workshops, a proprietary financial literacy program, and a vast array of online and printed materials. Free personal counseling is provided to consumers to identify the best options for the repayment of their debt. Consumers interested in speaking with a DMCC certified credit counselor may call (866) 618-3328 or request help at dmcconline.org. DMCC is a HUD Approved Housing Counseling Agency, is approved by the U.S. Trustee to provide bankruptcy counseling and education, and has an A+ rating with the Better Business Bureau.