There are two different credit repair letters that can help you
in your efforts to repair your credit score. One is to file a
dispute to one or all of the three main credit bureaus about an
incorrect entry, and one is to dispute to the actual company or
entity that posted the negative entry.
You might be thinking that you should just call and see if you
can get faster results or resolve this dispute over the phone.
Don't. For two reasons, the first being that they won't respond
most times. And second, you want this information in writing so
that it can be verified in the future if the same information
surfaces again.
The first, the dispute letter to the credit bureaus, needs to
have very specific information on both you and your dispute. One
of the biggest errors found on many credit reports is information
that is reported in your file that does not belong to you. It may
be a person with similar name, address, or even social security
number.
So the disputer letter has to be absolutely accurate in
providing your information, stating the disputed item, and
providing information as to why it should be removed. One of the
huge problems credit bureaus have is that no individual reviews
any information on any credit record unless requested to do so by
the individual.
All three major credit bureaus do allow you to file this
dispute online. This will help speed up the process and also make
it a little easier to provide the information. But whether you do
it with a written document and send by mail or you do it online,
double check your information.
Once the credit bureau receives your dispute letter or online
request, it will request a verification from the company who filed
the disputed information. Then the dispute filer will either
provide substantiation, recognize that it is in error and state
that, or just not respond at all.
The dispute letter or online request will solve most of the erroneous
information issues. But there will be times that the company that
files the information will respond with what they consider to be
accurate information. That lets the credit bureau off the hook and
now you have to deal with the creditor who filed the negative
information directly.
The written correspondence is very important in these
situations for both keeping track of the time elements and
information provided. Once again if you think it would be better
to handle on the phone, don't. You won't have any record of the
time and information. This can cause undue delays and without
verification, you can't prove anything.
You basically have two options on the letter to the creditor,
either agree with the entry and ask for best way to resolve and
remove the negative information. Or if you have proof that this is
not valid information, state your case and provide the reference
material to back it up.
Once again double check all information to insure it is
accurate. If you are offering to settle the dispute, make sure
that settlement agreement includes the removal of the negative
information on your credit report. Say you agree to make a lump
payment to bring your account up to date and agree to make any
future payments on time. Also make sure that if you agree to do
that, they agree to remove the negative information from your
credit report.
Many people feel that it's important to have a paper trail to substantiate
both the timeline and information provided from either party. If
it would ever escalate to a legal case, that would be very
beneficial. In this day and age, online is probably fine if the
dispute is typical of incorrect infomation.
You can see an example dispute letter here: Credit
Bureau Dispute Letter. You can print it out and keep it for a
reference. The letter to the creditor should follow the same
format but if you have any suggested methods of resolving you
should add them at the bottom. Or simply ask what the best
solution would be for them to remove the negative information.
Most creditors will be more than happy to resolve a negative
entry and get you back on track in making payments. Few want to
punish anyone, their primary goal is to bring the account up to
date. But take nothing for granted and if it's not in writing, you
can't prove what was agreed to by either party. Always get it in
writing, just in case.
