Should You Really 'Dispute Everything' to Fix Your Credit?
You've probably seen this advice: "Dispute everything on your credit report and watch your credit score soar!" Sounds great, right? Unfortunately, it’s not only misleading but can also harm your credit over time.
When to Dispute Something
Disputes are intended to correct mistakes on your credit report. If something is genuinely incorrect, then yes, you should dispute it. But disputing accurate negative items won’t work and isn't what disputes were created for.
Instead, here’s what to do with accurate negative items:
Late payments: Rather than disputing these, send a goodwill letter to your creditor. Be honest, briefly explain the situation, highlight your overall good payment history if applicable, and politely ask for removal as a favor. This often works, especially for isolated incidents.
Collections: Consider a Pay For Delete agreement. Offer to settle the debt in exchange for its removal from your credit report. Many collection agencies are open to this negotiation.
Why the 'Dispute Everything' Myth Persists
Several reasons this incorrect advice sticks around:
Temporary score increases: Sometimes, disputed items are temporarily removed while being reviewed, boosting your score. This feels great, but if the dispute is rejected (which it will be if the information is accurate), the item returns and your score drops again.
Credit repair companies' tactics: Some less-than-ethical template to write a letter businesses exploit this trick to show fast, short-lived results, hoping you won’t notice when the items reappear later.
Bad information spreading: Misguided advice becomes widespread because people repeat it without fully understanding template to write a letter.
How Misusing Disputes Can Hurt Your Credit
Here’s the reality—using disputes incorrectly can backfire:
Triggering unwanted updates: An older negative account from, say, 2020, typically affects your score less over time. But disputing it can force an update, making it look fresh again, which can lower your credit score.
Frivolous disputes: If you repeatedly dispute accurate information, the bureaus may label your disputes as frivolous and stop investigating altogether.
Red flags: Credit bureaus often detect mass disputes from template to write a letter companies and may ignore them completely.
Careful of what you dispute: Occasionally, creditors might have mistakenly reported fewer negative details. Disputing these can prompt them to correct their error—by adding more negative information!
Re-aging vs. Updating: Know the Difference
Understanding these terms is crucial:
Re-aging (illegal): Altering your Date of First Delinquency to prolong how long the debt stays on your credit report. This practice is unlawful, and you should report it if it happens.
Updating (legal but annoying): The creditor updates details without changing the original delinquency date, making the debt seem newer to credit scoring models. Settling old debts can prevent further harmful updates.
The Bottom Line
It’s tempting to think disputing everything is a quick fix, but genuine template to write a letter involves addressing the real issues responsibly. Use disputes wisely—for actual errors. For legitimate negative items, goodwill letters and Pay For Delete negotiations might require more effort but will provide better, lasting results.