A credit dispute letter that works will have the necessary details, plus adequate supplementary information to back your claim. You can do this on your own, but it’s best to seek help from a Chicago credit repair consultant like The Phenix Group to ensure that you’re doing it right.
What Is a Credit Dispute Letter?
A credit dispute letter is a document that points out inaccuracies and outdated information in your credit report, with a request to remove these errors. In the letter, you explain why you believe the items are wrong and attach any supporting documents to back your claim. You send this to the credit bureau that issued the report with the error, which could be one or all three (Experian, Equifax, and TransUnion).
If the dispute is resolved in your favor, the credit report bureau will correct the errors and, if necessary, notify any lenders or employers of the updated information to ensure that the mistake doesn’t negatively impact your credit score any further.
Do Credit Dispute Letters Work?
Credit dispute letters are effective ways to correct mistakes on your credit report as it requires credit bureaus to investigate your issue. That said, it’ll only work in fixing your credit report and improving your credit score if you have strong evidence to back up your disputes.
To understand how to file the right challenges and strengthen your claims, it’s useful to have good credit education and understand factors like how long it takes for debt to become uncollectible in Illinois, what you can fix in your credit report, or the most common violations of the FDCPA. You can learn these basics with the help of a professional credit repair company like The Phenix Group.
What to Include in a Credit Dispute Letter
According to the Consumer Financial Protection Bureau (CFPB), a credit dispute letter should have four main parts:
Identifying Information
The identifying information includes your details:
- Full name
- Date of birth
- Current address
- Contact number
- The account number of the tradeline you’re disputing
You may also have to provide additional I.D. such as your driver’s license and/or Social Security number.
Company Information
The company information gives details on the credit bureau you’re making the dispute with or the data furnisher, including their contact information.
Disputed Items
Disputed items list the account numbers, dates, and errors that you’re disputing and why you want them changed. Here, you want to be specific about the inaccuracies.
Enclosures
The enclosures include physical copies of documents that you’ll want to send to the credit bureaus to make your case. Examples of these are your credit report with the inaccuracies marked or listed, previous billing statements, and payoff statements. Include what you want the credit bureau to do about the errors, as well.
Tips for Writing a Credit Dispute Letter That Works
An effective credit dispute letter needs to have sufficient information and evidence to prove that inaccuracies made by credit bureaus are actual errors. Here are some tips to help you write one that will work in your favor:
Be Meticulous With Your Evidence
Pay attention to the documents you include, making sure that each one backs up the disputes you’ve listed. It’s good practice to keep records of all of your bills and statements so that you have them when you need them.
Dispute One Error at a Time
Don’t bulk dispute errors at once. Dispute them one at a time or, at least, just a couple at once. If you have many errors to challenge, group them and space them out. This gives the credit bureaus enough time to focus on each dispute properly.
Remember to only dispute mistakes that are real–don’t attempt to make credit bureaus remove valid and legitimate negative items.
Send Your Letter by Mail
While there are convenient online channels where you can send your credit dispute letters, you’re still better off sending them off by certified mail with the return receipt requested. This way, you can rest assured that your complaint is being handled.
The Phenix Group Can Help With Credit Disputes
If you have inaccuracies that you want to dispute with your credit bureau but are unsure of how to do it, it’s best to seek help from The Phenix Group. We can help you identify errors in your credit report, write credit dispute letters that work, and be sure that you have all the necessary items you need to win a dispute in your favor and pull your credit score back up!