Bad Credit Personal Loans

If I have a dispute with a small business can they give me a bad credit rating?

We all deal with disputes with businesses both large and small all of the time. It may be a disagreement about service or a disagreement about a bill. Whatever the reason, it is important for that dispute to be resolved. As for it affecting your credit rating, it depends on what sort of dispute you are dealing with.

For example, a general dispute will not result in you receiving a bad credit rating. This means that you are not going to have to deal with bad marks on your credit file if you are slightly late and are disputing a payment or other expense. As a matter of fact, during a dispute any business small or large should not place a negative mark on your credit file if the dispute is ongoing. Anytime that there is an ongoing investigation, they do not do this because they would then have to go back and report to the credit reporting agency that the dispute was resolved and the mark was invalid. In other words, they are saving themselves a lot of trouble by reaching a dispute resolution before communicating any information to your credit file.

Now if the dispute resolution shows in their favor and the money that they are owed is not paid, they have the right to place this bad mark on your credit file. If the dispute has been ongoing for several months, you may find that more than one mark will be placed upon that account in your file if the account has not been brought current. These defaults remain on your credit file for 5 years. You can, however, contact the credit reporting agency and have a statement placed upon that account. In other words, any potential creditors, employers, or landlords who look at your credit file will see your response to that particular mark.

So yes, a small business can give you a bad credit rating, but they cannot do it during the dispute. By doing so they would possibly be making more work for themselves instead of waiting until the situation is resolved.

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