Having errors on your credit report can cost you; both in higher interest rates and missed opportunities. However, with the right tools at your disposal, rectifying these mistakes becomes easier. Dive in as we show you how to use a credit dispute letter to help you clear those discrepancies efficiently.
If you find inaccuracies or questionable items on your personal credit report, you have the right to challenge them. To do this, you can send a credit dispute letter to any of the three major credit bureaus.
When credit reporting agencies receive a dispute, they are obligated by federal law to investigate the item. They must verify the information within 30 to 45 days, correct it, or remove it from your credit report. While credit dispute letters are commonly directed at the credit bureaus, you can also send them to the original creditor to address concerns.
If written correctly, a credit dispute letter can be highly effective in removing negative items from your credit reports and fixing bad credit. Whether you take on a DIY approach or hire a professional, you can see positive results if you correctly execute the process.
To help, we have provided a credit dispute letter template below that you can model your letter after. We’ve developed a step-by-step guide to show you how to write a credit dispute letter. We’ll also show you what you can do to optimize your chances for success.
Perhaps you’ve been a victim of identity theft, or your credit cards were stolen. Or maybe you just notice mistakes made by your creditors. Either way, it is your legal right to dispute errors on your credit reports.
You have the right to ensure that what’s being said about you on your personal credit report is fair and accurate. It’s important to go about it in the right manner so that you don’t lose the opportunity to improve your credit scores using this method.
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Anything that a credit bureau is reporting on your credit report can be disputed. This includes, but is not limited to, the following items:
You get a free credit report from each of the major credit bureaus every 12 months. Once you’ve got your credit reports in hand, carefully review them. Look for any negative accounts that may be inaccurate or questionable.
Be very careful that you don’t dispute positive items. Once an item is removed, it’s just about impossible to get them back on your credit report.
If you are unsure whether an item is negative or positive, you are not quite ready to send disputes yet. Make sure you thoroughly understand what’s being reported on your credit history before starting the dispute process.
It’s not necessary to provide evidence when making a dispute as the burden of proof is on the credit bureau. However, if you have any supporting documentation that you believe will help your case, you can send it with the credit report dispute letter.
It could be a letter from a debt collector for a bill you already paid. It could also be proof that you paid off any owed amounts or a letter from the creditor noting that you agreed to a settlement. When providing copies of this information, just be sure to black out sensitive information like your Social Security number before sending it over.
Once you have everything pulled together, you’re ready to send a credit report dispute letter. If you go in prepared, you’ll have the best chance of success, so take a few minutes and pull your paperwork together. In your letter, identify the error on your credit report and note that you have circled the disputed item in an attached copy for their reference.
It’s important to explicitly ask that the disputed item be removed. Remember, the letter should be as customized as possible to achieve optimal results.
When writing your credit report dispute letter to a credit bureau, please remember these simple guidelines:
Note: Always include a photocopy of your driver’s license, state-issued ID, or U.S. passport and a copy of your Social Security card, pay stub, W-2, or a recent utility bill. Only 2 forms of ID are required.
Here are two sample letters for disputing a credit card account with a credit reporting agency. These templates are suitable for submitting credit disputes to Equifax, Experian, or TransUnion. Please remember that they are just examples. They’re intended to give you an idea of what a credit report dispute letter should look like and what it should contain.
Tailor your message to your specific circumstances. Keep it short and sweet. It’s always best to write the credit report dispute letter in your own words and know what you are doing. If you don’t know what you are doing, it is possible to worsen your credit situation.
