Disputing inaccurate information on your credit report may result in a better interest rate on a problem credit auto loan
Your credit repair
Even with poor credit you can improve your chances of an approval for no credit auto loans by correcting errors on your credit reports before you apply.
We've seen this happen dozens of times in the almost two decades we've been involved in bad credit car sales here at Auto Credit Express.
We also built a web site that explains to applicants why a tote the note dealer won't help their FICO scores and goes over the bad credit auto loans process so they can avoid many of the issues that result in repossession.
But there is a way you can lift your credit scores and improve your chances of approved auto loans by simply correcting any mistakes on your credit reports.
To review your credit reports, you'll need to order a copy of each one. You can request them online at www.annualcreditreport.com (you are entitled to one each year at no charge from each credit bureau).
There are also companies, such as FreeScore360.com, that, for a fee, will do this for you.
Once you get them, carefully review the information and check for crossed or duplicate information, records that should be expired, data errors and fraudulent information.
The length of time negative information can remain on your reports varies. Some common items are:
Tax liens – These can appear indefinitely if they aren't paid. Once paid, they can appear for an additional 7 years from the date paid.
Bankruptcies – Expire 10 years after the filing date with each account record that was included in the bankruptcy remaining on the report for 7 years.
Charge-offs, collections, closed negative accounts, foreclosures, late payments and repossessions – Each can appear for 7 years. In the case of collection records, the expiration takes place 7 years after the last 180 day late payment that led to the collection action.
Inquiries – Records such as credit requests or loan applications can remain on a credit report for 1 to 2 years.
The dispute process
Under the FCRA, you have the right to dispute incomplete and inaccurate information in your credit file.
Equifax and TransUnion will allow you to mail in disputes and, along with Experian, also offer an online process. In the dispute letter, be sure to include your name and address, a copy of the credit report listing the inaccuracies and any supporting material you may have such as account records, statements and lender correspondence.
Credit reports also contain the information needed in order to directly contact creditors – either by phone or in writing. If a creditor indicates that the information was incorrect, be sure you also get this in writing. Also, keep any paperwork concerning disputes. If a creditor continues to report the wrong information, you can send copies to the credit bureaus to have the notation removed.
Credit bureaus are required to investigate and make changes within 30 days following a dispute filing. Once it's complete, they will inform you by letter of the information that was or was not changed.
Once completed, you can order a final credit report at no charge to verify that the changes have been made.
Now see us
Auto Credit Express is in business to help people with bad credit find a dealer for their best chance at approved auto loans.
So if you are serious about getting your car credit back on track, you can begin by filling out our online car loans bad credit application.