Should You Always Dispute a Debt on Your Credit Report?

 Posted on June 06, 2024 in Bankruptcy

When it comes to managing your credit report, you must stay vigilant and address any discrepancies that may arise. In Texas, consumers can dispute inaccurate or incomplete information on their credit reports. However, the question remains for many about whether you should always dispute a debt on your credit report. A Texas lawyer can help you determine if you should be disputing a specific debt on your credit report.

Be Sure You Understand the Dispute Process

Under the Fair Credit Reporting Act (FCRA), credit reporting agencies (CRAs) in Texas are required to investigate disputes filed by consumers. When you file a dispute, the CRA must contact the creditor or information provider to verify the accuracy of the reported debt. If the creditor fails to respond or cannot substantiate the debt, the CRA must remove the disputed item from your credit report.

When to Dispute a Debt

You should make yourself aware when the proper circumstances fit to dispute a debt you find on your credit report. Some are the following:

• Inaccurate Information: If you notice errors, such as incorrect account balances, payment histories, or account statuses, file a dispute promptly. Inaccurate information can negatively impact your credit score and hinder your ability to secure credit in the future.
• Identity Theft: If you suspect you are a victim of identity theft and notice unauthorized accounts or transactions on your credit report, disputing these items is important. In Texas, you can also file a police report and request a security freeze on your credit report to prevent further fraudulent activities.
• Outdated Information: Negative items, such as late payments or collections, should be removed from your credit report after a specific period (usually seven years). If you notice any outdated information lingering on your report, disputing it can help clean up your credit history.

When Disputing May Not Be Necessary

If the debt reported on your credit report is accurate and properly verified by the creditor, disputing it may not yield the desired results. Instead, focus on making timely payments and rebuilding your credit over time. When you have a disputed debt that is relatively small and does not significantly impact your overall credit score, the effort and time invested in the dispute process may not be worthwhile. However, disputing debts can be beneficial if the debt is substantial or if multiple small debts are affecting your credit.

Contact a Dallas, TX Bankruptcy Lawyer

While disputing inaccurate or outdated information on your credit report is ideal, it may not always be necessary for every debt. By having a Fort Worth, TX bankruptcy attorney on your side, you can make informed decisions about when to dispute a debt. Call Acker Warren P.C. at 817-752-9033 to start with a free consultation to see how and if we can help to make your financial situation better.