Writing Your Credit Dispute Letter
Now that you have your freshly pulled credit report in front of you score and all its time to look for the items listed on the report.
Youre going to need to write letters to each bureau that lists problematic items. So, if all 3 bureaus show issues you want to resolve, then you need to write to each one, individually.
The best advice that I can give you is to hand write these letters so that it looks personal, and not like every other downloaded template that these bureaus see each and every day.
They receive thousands of these each day, so if you think that the template will slip by without a thought, youre probably wrong.
eOSCAR: The credit bureaus use an automated dispute processing system called eOSCAR. This system scans each letter utilizing OCR scanning technology.
From their website:
So, what does this all mean? It basically means that you cant simply send in the same letter everyone else is sending and expect different results .
Lets construct a sample letter that you can use to dispute the credit report errors on your report.
Full Name
Now, continue reading this before sending them out!
How To File A Dispute To Remove A Negative Items From Your Credit Report
If the information is correct and you pay off the outstanding debt, you can then ask the lender via phone or in writing to make a goodwill adjustment, removing the derogatory mark from your credit report. Although the lender is under no legal obligation to do so, goodwill requests are successful in many cases.
Note, the lender may also sell your debt to a collection agency, if it remains unpaid. The agency has the right to pursue further legal action against you.
You can check your credit report for free and also access personalized tips on how to improve your score here at WalletHub.
Does your credit score go up when a hard inquiry drops off?
No. Your credit score does not go up when a hard inquiry drops off your credit report. Your score will not go down when a hard inquiry drops off, either. Instead, a hard inquiry stops having an impact on your credit score after one year, which is one year before it drops off your credit report. The impact will decrease the closer you get to the 12-month mark, too.read full answer
You can check your latest and for free on WalletHub. Youll also receive personalized credit improvement advice.
How do I remove negative items from my credit report?
How Long Can A Debt Collector Pursue An Old Debt
Each state has a statute of limitations about how long a debt collector can pursue old debt. For most states, this ranges between four and six years. These statutes govern the amount of time that a debt collector can sue you, but there is no limit to how long a collector has to try and collect on a debt. If you are being contacted about a debt that you believe is not yours or is outside the statute of limitations, do not claim the debt instead, ask the company to validate that the debt is yours.
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How To Remove Negative Items Related To Identity Theft
If you believe youve been a victim of identity fraud, you should first file a dispute with the Federal Trade Commission online at IdentityTheft.gov or by phone at 1-877-438-4338. You should also file a police report.
After you report the incident, make sure to take the following steps:
- Request a copy of your credit report through AnnualCreditReport.com
- Look out for unauthorized transactions or new accounts that dont belong to you
- Contact the credit bureaus through phone or mail to dispute any credit information that doesnt belong to you
- Place a security freeze and fraud alert on your credit report
- Contact creditors to close compromised accounts
- Consider subscribing to an identity theft protection or credit monitoring service
Donotpay Can Help You Erase Bad Credit
You always want to remove bad credit history or negative items from your credit report, especially when planning to apply for a car loan or mortgage. If your credit report has negative information such as overdue bills, closed credit accounts, repossessions, and more, it will be an obstacle to a better lifestyle. Even if you qualify for a loan, you will likely pay a higher interest rate.
Erasing a bad credit on your own isn’t an automatic process. For instance, waiting it out may inconvenience you from seeking a loan. Also, submitting a dispute to the credit bureau is a tedious process. You have to write a letter and include copies of any proof, then wait for the investigations into your dispute.
Whatever you are dealing with from charge-offs, late payments, or foreclosures, you can count on DoNotPay to help you out quickly and easily. DoNotPays team can even draft a or debt validation letter to ensure it can help you improve your credit score.
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File A Credit Dispute
The most popular way of removing information from your credit reports is to file a credit dispute with the credit bureaus reporting the derogatory items.
If the information turns out to be inaccurate, the credit bureaus are legally obligated to remove it for you.
All you need to do is send a dispute letter to the relevant credit bureaus along with supporting documentation, if you have any.
This documentation could consist of receipts proving that you paid a given debt on time, or personally identifying information that shows the bureaus confused you with someone else .
Create your credit dispute letter with the template below:
Use this to file a dispute directly with one of the credit bureaus. Mistakes in your personal information , as well as credit accounts that you don’t recognize, should usually be disputed with the bureaus. Often they’re the result of the bureau confusing you for someone else.
Where to Send Your Dispute Letter
Below youll find the mailing addresses of all three credit reporting agencies . Its also a good idea to also send a letter to the original creditor or debt collector that reported the information to the credit bureaus.
| TransUnions online dispute form |
You may have to repeat the process with all three credit bureaus
Submit A Dispute To The Credit Bureau
The Fair Credit Reporting Act is a Federal law that defines the type of information that can be listed on your credit report and for how long . The FCRA says that you have the right to an accurate credit report and because of that provision, you can dispute errors with the credit bureau.
are easiest when made online or via mail. To make a dispute online, you must have recently ordered a copy of your credit report. You can submit a dispute with the credit bureau who provided the credit report.
To dispute via mail, write a letter describing the credit report and submit copies of any proof you have. The credit bureau investigates your dispute with the business that provided the information and removes the entry if they find that is indeed an error.
Read Also: Does A Soft Pull Affect Credit Score
Can You Remove Derogatory Marks From Your Credit Report
Yes, its sometimes possible to delete derogatory marks from your credit report. The amount of time that they stay on your credit report is dictated by the Fair Credit Reporting Act, but you may be able remove negative marks on your own if theyre invalid or you persuade your creditors or debt collectors to stop reporting them.
You can use the information in the table above to get started on removing the black marks on your credit report, but well also explain the process in more detail at the end of this article.
Are credit inquiries considered derogatory marks?
No, inquiries on your credit report are not considered derogatory, regardless of whether theyre hard inquiries or soft inquiries. 1 Although hard inquiries may cause a small drop in your credit score, theyre simply records of your applications for new credit, and theyre neither positive or negative. Their negative effect also only lasts for a few months. Soft inquiries have no effect on your score at all.
Negative Impacts On Your Credit Score
Here is a list of factors that can impact your credit score in a negative way and stay on your credit report for up to seven years in most cases.
- Late Payments or Non-Payment: One of the most important factors of your credit score. Paying your debts late on a consistent basis can signal lenders that you cannot afford, or are unwilling, to pay your debts. If you are overdue on a payment by 30 days, according to Equifax, your score can drop 100 points.
- Having a charge-off: When a creditor gives up on you paying your debt, they charge off your account which can cause your credit score to drop by 100 points or more.
- Bankruptcy: This should be considered as your last resource. Declaring bankruptcy can negatively affect your score by up to 200 points or more.
- Foreclosure: Depending on what your starting score is, a foreclosure can cause up to a 100 point drop.
- Repossessions: A car repo may cause your score to drop over 100 points. Additionally, a note about the repossession will stay in your report for up to seven years.
- Judgments: This is when a court is involved to ensure debt repayment. The impact can vary but scores can drop over 100 points. This, along with tax liens, stay on your credit for 10 years and it is renewable for another 10 years if the plaintiff decides to go back to court.
- Collections: When a credit hires and outside firm to collect payment due on a debt. Categorized as payment history, scores can drop over 100 points too.
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Certain Items Should Fall Off Your Report In Less Than 7 Years
No matter how damaging to your score, however, the negative items on your credit report wont live forever. Much like the hairstyle you wore in high school, negative credit information has a shelf life, after which time it expires. In other words, once a negative item has reached the time limit, it automatically disappears from your report.
This awesomeness is thanks to the Fair Credit Reporting Act , which provides a number of consumer credit protections. In addition to dictating how long negative information can remain on your reports, the FCRA also gives you the right to know what information is in your credit reports, as well as guaranteeing you have access to your credit scores.
As outlined in the FCRA, the exact amount of time a particular item is allowed to hang out on your report depends on the specific type of item. Most positive account information can remain for up to ten years after the account is closed. The majority of negative credit accounts including delinquent payments, defaulted accounts, paid tax liens, and foreclosures may only stay on your credit report up to seven years.
File A Dispute Directly With The Creditor
You can also contact the company that provided the information to the bureau in the first place, such as a bank or credit card issuer. Lenders are required to investigate and respond to all disputes.
Remember to include as much documentation as possible to support your claim. Including a copy of your report marking the error is also helpful.
The address you should mail the letter to is usually listed on your report, under the negative item you’d like to dispute. You can also contact the lender directly to verify the mailing address and the documents you should include.
If the lender finds that it was mistaken or cannot prove that the debt actually belongs to you, it will notify the bureau and ask it to update your file.
Also Check: What Does Account Closed On Credit Report Mean
Strategies For Successfully Disputing Your Credit Report
Derogatory items are easy to get on a report but harder to take off. However, it is possible to get these taken off a credit report. The following are the steps in which you can try on your own to remove derogatory marks:
Correcting derogatory marks can seem daunting. With all the information and paperwork that needs to be sent to each agency, it can be a little stressful in getting all the information prepared. What if there was a simpler way to get a derogatory mark disputed? That is where DoNotPay comes in!
Fixing Credit Report Errors
To ensure mistakes are corrected as quickly as possible, contact both the credit bureau and organization that provided the information to the bureau. Both these parties are responsible for correcting inaccurate or incomplete information in your report under the Fair Credit Reporting Act.
Keep in mind that all three of the credit bureaus now accept the filing of disputes online, with Experian now only accepting online submissions.
Find out how to initiate a dispute online.
Begin by telling the credit bureau what information you believe is inaccurate. Credit bureaus must investigate the item in question-usually within 30 days-unless they consider your dispute frivolous. Include copies of documents that support your position. In addition to providing your complete name and address, your communication should:
- Clearly identify each disputed item in your report.
- State the facts and explain why you dispute the information.
- Request deletion or correction.
You may also want to enclose a copy of your report with the items in question circled. Your communication may look something like this sample.
If mailing a letter, send it by certified mail, return receipt requested, so you can document that the credit bureau did, in fact, receive your correspondence. Also, keep copies of your dispute letter and enclosures. If you want help disputing mistakes on your credit report, myFICO can help you write a free letter in minutes.
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Check Your Credit Report
Because your credit score is so important in getting loans, credit, and housing, its important to check your credit reports regularly to make sure they are correct and complete. Checking your credit reports will also alert you to identity fraud because youll see if someone has opened accounts in your name or if late payments have been reported for purchases you didnt know about.
You can get one free copy of your credit report every 12 months from each of the three major credit reporting companies . All three credit reporting companies collect credit information, but different things may show up on the different credit reports. You can monitor your credit for free by getting free copies of your credit report. There are two common ways to do this:
In addition, you can get a free copy of your credit report:
To order a free credit report, go to Annual Credit Report or call 1-877-322-8228. You can also fill out the Annual Credit Report Request Form and mail it to:
Annual Credit Report Request ServiceP.O. Box 105281Atlanta, GA 30348-5281
How Do I Remove Negative Items From My Credit Report
To recap the material already presented, you have several ways to legally remove negative credit report items:
- Dispute erroneous items on your credit reports by doing the work yourself.
- Hire a credit repair service to dispute inaccurate items on your behalf.
- Send a goodwill request.
- Send a pay for removal request.
- Wait for items to age off your reports.
The last item, waiting for bad items to age away, is the easiest method, as you dont have to lift a finger for it to work. The downside is that it may take several years to bear fruit.
You can initiate credit repair yourself without the expense, although youll have to devote some time to the process. Alternatively, you can pay credit repair companies to do the job for you.
are better positioned, have superior knowledge, and can usually complete the job for under $1,000, sometimes considerably less.
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What If They Dont Comply
If the CRA does not comply, then your next move is to send an intent to file a complaint with the CFPB .
If the first 2 letters do not get the errors removed, then its in your best interest to let the CRA know that you intend to do next.
Heres an example letter:
Full Name
City, State, Zip Code
Dear Sir or Madam/To Whom It May Concern,
Please be advised that if the items are not deleted I will be filing a complaint with the CFPB .
On I requested that inaccurate/erroneous items that were illegally being reported to my credit file with your agency be deleted. You refused to do so and claimed to have verified these items.
On I requested, as required by FCRA 611 , that you provide me with a complete copy of the information that you used to investigate the matter. You failed to provide me with that information and again failed to delete the items.
Federal Law requires you to respond within 15 days. It has been over . Failure to comply with Federal Regulations by Credit Reporting Agencies will be investigated by the FTC and/or the CFPB.
These negative items have caused financial and emotional stress. Your blatant disregard of the law forces me to fully exercise my rights and file a formal complaint with the Consumer Financial Protection Bureau. Please be advised that I will file this complaint if these inaccurate items are not removed immediately.
1. Cell Phone, Account # 1234562. Cable Bill, Account #6543213. Credit Card, Chargeoff, Account # 00120034
Sincerely,