I am in the process of purchasing a home and anticipate I will need to close anywhere from 3 to 4 months from today. It was not until recently that I checked my credit report only to find out there were quite a few inaccurate entries. I disputed them and most of them were erased, but some remained on the list. We are talking about small amounts I would normally dispute, as they are not mine (at least that I honestly remember), but at this point, I am not sure whether disputing is the way to go for me, as I need them off my credit report soon (I should start financing soon). I am considering settling with the companies. In other words, I am willing to pay them the entire debt if they agree to remove the entries from the report. Is this a good idea? If so, how do I go about it? Should I write them (any sample letters you could recommend) or should I call them (what should I be asking for, be aware of, be careful with, etc.)? Thanking you all in advance!
I would dispute them if you feel they aren't legit. Perhaps if you are intending to refinance, you might be able to get a rate lock until you get your credit straight. This could work in your favor. Lets assume that you dispute debt with CA #1. They sit on their butt. Meanwhile, you have your rate locked in. They drag your feet, you wind up suing them. While that occurred, your lock period ended. You have to refi at a higher percentage. They just caused you years of higher interest, because they chose to violate the law. Sounds plausible, right. IT HAPPENED TO ME! If you do decide to pay them off, DON'T DO IT WITHOUT A RESTRICTIVE ENDORSEMENT. An interesting link I found that covers this topic can be found here. This way, you can pay them, feel good about it, get it off your reports, and if they don't comply, sue the crap out of them. BTW, don't get anything more than a 15 year fixed rate.
