Some consumers feel guilty when they dispute derogatory items on their report. Let me give you a different perspective…
Most estimates show that between 76-100% of credit reports contain errors.
It is not a fluke that these percentages are so high. Many creditors are intentionally initiating tactics to lower consumer credit scores. This then gives them more leverage to try to collect the debt or charge more interest.
One of the most aggressive tactics these creditors are using is the re-aging of the Date of Last Activity (DLA) on your credit reports.
The DLA measures how recent your credit accounts are on your credit reports. With collection accounts, this date is based on the last date you made a payment on that account. But many creditors are changing these dates to make it look like your negative accounts are more recent than they really are. Most collection companies are also blatantly violating Federal law and misrepresenting the Date of Last Activity. They report the DLA as the date they took over the account, when really it is supposed to reflect the date you last made a payment.The end effect of these actions is devastating to your credit scores. This is one of the reasons you should consider never paying off a collection (I will elaborate at another time…).
Instead of the negative accounts having a lesser credit score effect over time, now creditors are reporting it for many years to make it look like the account was recently defaulted.
This keeps your credit scores low and prevents you from using your credit to qualify for financing. Not only are these practices unethical, but they are also illegal and can be stopped with proper credit dispute tactics. If they are not being reported accurately on a negative account, this is a Federal law violation and you can use it as leverage to force the creditor to delete the negative item.
So why do you still sometimes feel guilty for disputing the information on your credit report even when creditors use shady tactics?
It’s because the debt belongs to you. I want you to consider the many well known millionaires who have filed for bankruptcy. They leveraged the system to “clean the slate”. Donald Trump, Walt Disney and Larry King are just a few wealthy top hitters who used bankruptcy to seek relief from their debts. The fact that you are reading this information shows that you are striving to gain control of your personal economy. You made mistakes. You missed a payment or fell upon hard times. That doesn’t mean you shouldn’t be able to qualify for a home loan or a decent interest rate on a car. Some people have to pay high deposits to rent an apartment or for utilities. How does that help you get back on your feet?
Use the laws put in place to protect you and give yourself another chance. Learn from your past mistakes and move forward. If millionaires with established brands and money in the bank deserve leverage to bounce back, so do you.[activecampaign]