How To Write A Credit Dispute Letter?

Submitted by: Christopher Granger

A credit dispute letter is necessary for any corrections in the credit report that the person obtained from any of the three largest credit reporting agencies in the United States of America. The Fair and Accurate Credit Transactions Act of 2003 allows US residents to request for a free credit report from Experian, TransUnion, and Equifax once a year. From these credit reports, an individual can check for any inaccuracies or discrepancies.

A credit dispute letter can serve as a formal request to the credit reporting agency to make the corrections or to verify the reported discrepancy. For better processing of the dispute, it is best that only one dispute be taken up in one credit dispute letter. The item must be highlighted or encircled in the credit report and must accompany the letter. The credit dispute letter must be simply written yet using compelling words to make the credit reporting bureau act on the letter.

The credit dispute letter must be sent through certified mail with return receipt. It normally takes two weeks to one month for a credit reporting agency to reply just informing the letter sender that the reported case is being investigated. One can expect another month, at most, for the agency to make the proper corrections. After the dispute has been corrected, the next credit dispute letter can be sent in case there are numerous mistakes to challenge.

To dispute credit report mistakes, the individual must have everything documented. Dates are important in making the challenge. A person making the dispute letter must make sure to keep track when the letter was sent plus the deadline dates so he/she can follow up with the credit reporting bureau. To show consistency and persistence, the individual must make the necessary follow ups.

The dispute letter can be handwritten, typed, or printed. Making lengthy explanations about the mistake is not really necessary because once the letter is received, the credit reporting agency will make its own investigation regarding the matter. Therefore, it is just time and space consuming to write a long letter reporting about the mistake.

Credit rating is important particularly in the United States of America because it serves as basis for financial institutions to grant credit to individuals. A credit rating is a number that signifies an individual s creditworthiness. The most used and best known credit rating in the USA is the FICO score. The FICO score is a number conceptualized by the Fair Isaac Company, a publicly listed company in the New York Stocks Exchange, which aims to help financial companies make high volume and complex decisions.

The FICO rating is used by TransUnion and Equifax to produce their credit report credit scores. Different data is used by these three credit reporting agencies therefore, it is expected that they issue different credit reports. An individual must be vigilant in checking his/her credit reports because errors can hurt his/her credit rating. In cases of mistakes, he/she must not hesitate to write a credit dispute letter to correct the errors.

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