Bad Credit Refinance: Disputing Errors on Your Credit Report

By Gabriel Traverso
Mortgage Credit Problems Columnist

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Lenders use your credit report to determine your eligibility for a loan, as well as to determine the terms of that loan. When you find an error on your report, take steps to have it corrected quickly.

An amendment to the federal Fair Credit Reporting Act requires that each of the three credit bureaus provide you with a copy of your credit report, free of charge, once every twelve months. You can go to www.annualcreditreport.com for a copy of your report.

Disputing Information on Your Credit Report

It is your responsibility to dispute inaccurate information on your credit report. Correcting errors can have a huge impact on whether or not you can get the bad credit refinance you're looking for.

Notifying the Credit Bureau

Send a letter to the credit bureau explaining what you believe is inaccurate. Send copies of documentation that support your claim -- never send originals. You should also send a copy of your credit report and circle the mistakes you've found. Send your letter by certified mail and request a return receipt.

Unless the consumer reporting company finds your dispute frivolous it is required to investigate your claim within 30 days. Should it find that your claim is accurate it is required to notify all reporting agencies at once. You can also request that the reporting company send a letter explaining the inaccuracy to anyone who has requested your report in the past six months.

If Your Dispute Isn't Resolved

If you receive notification that your dispute isn't resolved, request that a statement of the dispute be included with your report. This keeps the dispute on record for future companies who request your credit report.

Refinancing your mortgage with bad credit requires a little extra effort on your part to make sure that you get the best possible deal. Checking your credit report is the first step, and can help get you a better rate on your bad credit mortgage refinance.

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