Remove Credit Disputes

In this mortgage blog guide, we will be covering how to remove credit disputes during the mortgage process. Credit disputes are generally not allowed during the mortgage loan application and approval process. When a consumer disagrees with the way a credit tradeline is reported on the credit bureaus, they have the right to dispute the subject credit tradelines to each of the credit bureaus that are reporting the tradeline in error.

The credit bureaus have 30 days from the time they get the dispute to contact the creditor in question about the credit dispute. If the creditor responds back with verification validating the way they are reporting, the derogatory stays. However, if the creditor does not respond by validating their reporting, the consumer wins. The creditor needs to remove the derogatory credit from the consumer credit report.

How Does The Credit Dispute Process With The Credit Bureaus Work?

The process of a credit dispute is when consumers write to the credit reporting agency disputing the credit tradeline in question and why the credit bureaus are reporting it erroneously. It is highly recommended that you initiate a credit dispute on credit tradelines that are reported in error. However, if you do not have documentation to document the error, the chances are that the derogatory credit item will not change. It is very difficult to have a derogatory credit item reversed with only a letter of explanation.

Many consumers and credit repair companies will dispute bad credit for the sake of hoping the credit bureaus will remove them by overlooking fact-checking the disputed credit tradeline. In the following sections, we will cover what credit disputes are, why consumers initiate credit disputes, and how to remove credit disputes so you can qualify for a mortgage.

Reasons Why Consumers Should Dispute Credit Tradelines?

When a consumer disputes a particular credit tradeline, they should attach any documents that prove the credit bureaus are reporting the credit tradeline in error. An example can be a collection account reporting as unpaid but the consumer has a paid receipt. A judgment is reported as an active unpaid judgment but the consumer has a court order that vacated the judgment. Another example is a late payment on a mortgage loan that is reported late but the homeowner has a paid receipt and canceled check along with a letter from the mortgage servicer the lender has made a mistake.

To remove credit disputes for legitimate disputes may be necessary if you currently are in the mortgage process. Credit bureaus investigating a dispute can take time. If  your mortgage process is halted and you need to proceed, you may need to remove credit disputes in order for the mortgage process to proceed.

If you do not have documentation to provide the credit bureaus, you may try contacting the creditor. If the creditor agrees that you are correct or gives you a one-time reprieve, a letter from the creditor stating they reported the derogatory as an error on that part, the letter from the credit is sufficient in getting the item reversed. All of these examples are valid reasons to do a credit dispute. With documentation showing your case, the credit bureaus will correct the error and report accordingly.

Reasons Why Consumers NOT To Dispute Credit Tradelines

Many people are under the assumption disputing derogatory credit tradelines that are legitimately reporting correctly will get the bad credit removed. This can happen but more than likely not. If the derogatory credit tradeline is reporting correctly, just disputing it for the sake of hoping to get it deleted can backfire during the mortgage process.

There are instances where the credit dispute will not be removed even if you request it to be removed. There are instances where disputing medical collections and zero balance non-medical collections can increase your credit scores. Medical collections and non-medical collections with zero balance are exempt from you to remove credit disputes. We will discuss how to increase your credit scores artificially on medical collections and still qualify for a mortgage.

Can Credit Bureaus Not Remove Credit Disputes?

What happens if the credit bureaus do not remove the credit dispute, you may not be able to proceed with the mortgage process. More recent derogatory credit tradelines are difficult to get removed through credit disputes. Older derogatory credit tradelines have little to no impact on your credit scores. Many credit repair companies use disputing derogatory credit tradelines in hopes of getting it deleted. credit bureaus are not dumb. Unless you have solid documentation the derogatory credit item is wrongly reported, it is difficult to get it deleted.

Can You Get a Mortgage With Credit Disputes on Your Credit Report?