Crafting an Effective Credit Repair Letter

Written by Dana Neal

Caution: This covers credit repair letters used to dispute inaccurate information. When disputing accurate information, use White Hat.

Although some bad credit information on credit reports is accurate, of course some is often inaccurate. Furthermore, an adverse entry may be accurate in a technical sense but inaccurate by virtue of a legitimate dispute between a consumer and a furnisher.

Disputing inaccurate bad credit using letters.

One thing you must always consider carefully when removing inaccurate information is your FICO credit score. Some inaccurate information may not be adverse at all, and its presence may be helping your score more than it’s hurting it. Even certain inaccurate information that is adverse may be helping more than hurting by virtue of its age, credit limit, and so on.

When erroneous bad credit information exists, simultaneously contact the bureau(s) and the furnishers. Remember to handle all such correspondence in writing only, using the insurance method (certified mail, return receipt). Do not use the online forms the bureaus provide for any reason. By providing them with every possible bit of information, spelled out in writing and accompanied by supporting documentation, you preclude any possible claims on their part that the information you provided is incomplete. Furthermore, should a legal battle ensue, any claims they make in defense of their actions will not help them. They’ll be hog-tied, pinned, finished. Get it? It’s game over. Protections are in place under the FCRA for your benefit, and your paper trail provides the necessary proof when they fail to follow the rules.

Be specific when disputing inaccurate bad credit entries.

When you’re disputing inaccurate information with the bureaus, it’s important to be as specific as possible. Bureaus will often expedite the processing of your dispute if it contains your (1) full name with suffix, (2) current address (as reported by a current creditor) and previous addresses over the previous 24 months, (3) date of birth, (4) telephone number, (5) SSN, (6) spouse’s name if married, (7) current employer, (8) description of the item in dispute accompanied by a copy of your credit report with the item highlighted in some fashion, (9) explanation as to why you are disputing the information (e.g., “doesn’t belong to me”), and (10) request to delete or correct the erroneous information.²

BestCredit customers will find that credit bureau dispute letters don't have to be difficult. Credit Ace is a credit repair software program that generates dispute letters automatically, letters which contain effective language that the credit bureaus understand.

Your initial correspondence with bureaus and furnishers should not contain any threats or even mention of legal action. It should simply be clear and concise and list any ways in which the inaccurate entry is hurting you.

Additional information will be provided in follow-up articles, which will address specific types of bad credit entries.

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2. NCLC Fair Credit Reporting § 7.3.2.3 (5th ed. 2002 and 2005 Supp.).

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