← Get A Grip On Your Money with Damon Carr
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Cash is king, but credit is power. Let's be real. Having good credit makes life easier. A solid credit score means you qualify for low interest rates on loans and credit cards, making borrowing money cheaper. Want to rent an apartment? Many landlords check your credit before handing over the keys. Need car insurance? A poor credit score can hike up your premium. Looking for a job? Some employers review credit reports before hiring. Even cell phone companies check your credit before sign you up for a plan. If your credit is bad, you'll either get denied or have to pay a hefty deposit up front. Here's the good news. If you have thin credit, little to no credit history, or no credit at all, you're better off than someone with bad credit. Thin credit means you have a clean slate to build from. Bad credit means you've made mistakes that need fixing before anyone will trust you with their money. Bottom line Protect your credit like you protect your paycheck. That starts with making sure your credit card statements are accurate. Mistakes happen. Fix them fast. Credit card companies make mistakes all the time. You might see duplicate charges for the same purchase. Incorrect amounts charged. Charges for items you never received. If you see an error, don't ignore it. Fix it fast before it messes up your budget, credit score, or both. Here's how to dispute a charge and come out on top. Contact the merchant. Start where the problem began. Call the store, website or service provider that charged you. Many disputes can be quickly resolved at this stage. Explain the issue. Be clear and direct. Write down the date, time and name of the person you spoke to. Ask for a refund or correction. If they fix it, great. If they don't, move to Step two. Step two Dispute the charge with your credit card company. If the merchant won't budge, take it up with your credit card issuer. The Fair Credit Billing act gives you 60 days from the statement date to file a dispute. How to open a dispute with your credit card company? Call the customer service number on the back of your card and report the error. Send a written dispute letter. This step is critical. Your name and account number. The amount and date of the disputed charge. A clear explanation of why the charge is wrong. Copies not originals of receipts, emails, or any proof. Use the FTC's sample dispute letter. Always keep a copy of your dispute letter. Any documents you send. Step 3 the investigation process Once you file a dispute, your credit card company acknowledge your complaint within 30 days. Investigate and resolve the dispute within 90 days. While they investigate, you don't have to pay the disputed charge, but you still have to make minimum payments on the rest of your balance. The final decision your credit card company will send you a written decision. If they rule in your favor, the charge is removed. If they deny your claim, they'll tell you the amount you owe and the due date. Still disagree? You can appeal or file a complaint with the Consumer Financial Protection Bureau. How to dispute errors on your credit report A credit card billing error is one thing. A mistake on your credit report is a whole other problem. It can lower your score and cost you money. Here's how to fix it. How to open a dispute with the credit bureaus if you find an error on your credit report, dispute it directly with the credit bureau that reported it. Get a copy of your credit report. Check experian, Equifax and TransUnion for mistakes. You can get free reports@annualcreditreport.com submit a dispute online, by phone or by mail to the bureau that has the error. Experianexperian.com disputes or call 1-888-experian equifax equifax.com personal disputes or call 1 866-349-5191 transunion transunion.com dispute or call 1-800-916-8800 what to include in your dispute A clear explanation of the error. Copies of supporting documents, not originals. Your full name, address and account number. The credit bureaus must investigate within 30 days and correct the error if they find it valid. Final takeaway Credit gives you power, options and financial security, but only if you manage it right. That means checking your statements and reports regularly, disputing errors as soon as you spot them. Keeping your credit clean to open doors, not close them. Mistakes on your credit card, bill or credit report can cost you money, opportunities and peace of mind. Don't let them slide. Dispute them today. I'm Damon Carr, your money coach and tax pro. Please like share and subscribe for more money saving tips.