Debt, late payments and redundant financial accounts in your name are some key factors that can affect your credit score. If you’ve been ignoring these, you run the risk of allowing your credit score to plummet.

In addition to these factors, erroneous and obsolete items in your credit report can also wreak havoc. Texas citizens have the right to dispute the credit reporting agencies through a credit repair company if there are discrepancies in their credit reports.

Here is a step-by-step guide to dispute credit report errors:

Step 1 – Order Credit Reports

You are entitled to a free copy of your credit report every year from all three financial bureaus — Equifax, Experian and TransUnion. Verify them in detail to look for obsolete, outdated and inaccurate items and make sure that even the small credit lines are reported properly.

Step 2 – Gather Proofs

Documented proofs such as bank records and loan applications can help you create a strong case for yourself when you dispute the errors you identify in our report.

Step 3 – Draft a Letter

Write a letter to the bureau(s) regarding the disputed information on your credit report. This is where professional assistance will come in handy as experts from a reputed credit repair firm can assess your case and dispute on your behalf. Beware of the credit restoration firms that mass produce run-of-the mill automated letters for all their clients. At BMS, we make sure all of our clients are getting one-on-one help.

Step 4 – Take Precaution

Make a copy of everything and always prefer postal mails as opposed to e-mails. Use a certified mail carrier and request for a return receipt as well.

Step 5 – Follow Up

Credit Bureaus are legally obliged to investigate your case. If you don’t get a response from them within a month’s time, your credit repair firm will follow up on your behalf with the concerned bureaus to ensure you verify the transactions in the credit reports and remove the disputed items as soon as possible.

There’s a chance that the credit bureaus may consider the case frivolous or invalid. In this scenario, you have the right to dispute again if you don’t agree with them. Also at this point is where BMS would then directly audit the collection companies and creditors for validation of debt. Keep in mind that credit restoration also requires that you improve your financial behavior and manage existing debt meticulously.