When was the last time you checked your credit report? Although they’re usually accurate, mistakes can happen. If you don’t review your report regularly, you might be surprised by errors that could impact your ability to secure a mortgage loan.
Wondering how to remove credit card disputes or resolve a credit dispute for your mortgage loan? You’ll find all the answers and tips you need right here!
What Is a Credit Report?
A credit report is a statement, or summary, of your credit history. It shows how much money you’ve borrowed and the repayments you’ve made. Mortgage lenders use credit reports to decide whether you’re eligible for a loan. The report helps them decide if:
- To confirm you can afford the mortgage loan.
- To ensure you’re likely to make payments on time.
What’s a Credit Report Dispute?
A credit report dispute is when you request a change or update to your report. This is because you’re disputing an entry in the report as being inaccurate. You might dispute:
- Credit card applications you don’t recognize.
- Incorrect balances or repayment information.
- Personal details that don’t match your actual accounts.
Disputed entries are temporarily marked as “in dispute.” While this can temporarily improve your credit score, it creates a problem for mortgage lenders because disputes can mask negative information. However, if your dispute is unsuccessful, the disputed entry shows back up again. This could lower your score, depending on what the entry is.
You’re best to wait until disputes are settled before applying for credit.
Example: When Caroline and I bought a house, we discovered a credit card on her report that wasn’t hers. While the cardholder had a great payment history, it had a $10,000 balance that didn’t belong to her. We disputed it with Experian, and it was marked as “in dispute” during the investigation. Within a few weeks, the dispute was resolved, and the trade line was removed from her credit report.
Why Are Credit Card Disputes an Issue for Mortgage Loans?
Mortgage lenders require disputes to be resolved before approving a loan. This is because disputes can temporarily hide negative information, leading to an artificially inflated credit score.
Why This Matters:
- Disputes give lenders an incomplete view of your financial history.
- A “false positive” credit score could result in loan delays or denials.
Some credit repair companies exploit this by disputing accounts to boost credit scores temporarily. However, these disputes must eventually be resolved to ensure an accurate credit report for mortgage lenders.
How To Remove a Credit Report Dispute
Want to know how to remove dispute comments from your credit report? It’s easier than you might think. To remove disputes from a credit report (for free) you can contact whichever credit bureau is reporting the dispute.
- Experian: Start a new dispute online. Typically, Experian must respond within 30 days. If you’re in Maine, they only have 21 days to resolve your dispute. If you don’t agree with the outcome, you can provide further evidence to support your claim.
- Equifax: File a dispute online. It’s free. Equifax will investigate and update your credit report within 30 days. You can complain to consumer services if you’re unhappy with the outcome.
- TransUnion: Again, the quickest way to file is online. Just create an account if you don’t have one and start a new case. You’ll have the results within 30 days or you can escalate matters.
Key Credit Report Dispute Tips:
- If you’re disputing a credit card account error, provide supporting documentation to speed up the process.
- Always follow up to ensure the dispute status has been removed.
Will Removing Disputes Hurt My Credit?
No! Removing disputes won’t hurt your credit score. In fact, it can improve your score if inaccurate information is corrected. A clean, accurate credit report is essential for securing a mortgage loan.
Benefits of Removing Disputes:
- Ensures your credit report reflects your true creditworthiness.
- Prevents delays or complications during the mortgage approval process.
Whether you’re removing disputes for mortgage applications or your own peace of mind, it’s worth the effort.
How Long Does it Take to Remove a Credit Report Dispute?
The timeline varies depending on the credit bureau, but most disputes are resolved within 30-45 days. If delays occur, you can file a complaint to expedite the process.
What Happens When a Report Is No Longer in Dispute?
If the disputed information is removed, the matter is closed. Your credit report is accurate – as it should be. You should review your credit reports regularly, though, just in case you spot another issue you need to dispute.
Once the disputed information is corrected or removed, your credit report will reflect accurate data. Mortgage lenders can then evaluate your creditworthiness without any hidden or masked information.
Best Practices After a Report Is No Longer in Dispute:
- Review your credit report regularly to catch errors early.
- Resolve disputes well before applying for a mortgage loan
Need Help Removing Credit Card Disputes?
If you’re unsure how to remove disputes or need expert advice, we’re here to help. For professional credit repair assistance, we highly recommend Wayne the Credit Guy, wayne@creditbureauinc.com, who has been trusted for over 15 years. Contact the Mortgage Mark Team today for guidance on preparing your credit report for your mortgage loan. Let us help you take the next step toward homeownership!
CMG Home Loans is not a credit repair agency. This packet is for informational purposes only.
Mark Pfeiffer
Branch Manager
Loan Officer, NMLS # 729612
(972) 829-8639
MortgageMark@MortgageMark.com