Credit Repair Letter - What It Does
By John Cooper | October 27, 2008
A credit repair letter is how you challenge negative items on your credit report. This letter is also commonly called a dispute letter.
This letter is you way of telling the credit bureaus that a mark is incorrect. When your letter is received and deemed valid the credit bureaus will start an investigation into the mark. You must send a letter to each credit bureau that is reporting the negative mark.
In your letter you must include the disputed item, the reason for the dispute, your name and address. Common reasons for a dispute are; account is paid in full, not your account, information wrong, item out of date and more.
Congress passed the Fair Credit Reporting Act to help protect you from the credit bureaus. This law forces the bureaus to investigate a dispute and remove any inaccurate or unverifiable listing from your credit report. Consumers had no method of removing a negative item from their credit before this law.
The hard part of credit repair is the bureaus have to deem your letter "valid." The reason this is hard is because when bureaus conduct an investigation it comes at their own expense.
Thus the credit bureaus will avoid conducting an investigation and do this through stall tactics. These stall tactics are in place to frustrate you and force you into giving up on the dispute process. It is common for bureaus to respond to a dispute letter with another letter that requests more information about the listing.
You should also be aware that the 100 word statement serves no benefit to you. This is a statement that you can place on your credit report next to a negative mark.
In the past this space was where you could provide the details and reason for what happened. However today if you submit this statement you are only acknowledging your guilt to the credit bureaus.
This will cause you to have literally no chance of ever removing this negative item from your credit report. The bureaus will deem any future letter challenging the accuracy or validity as erroneous, resulting in the mark staying on your report.
Negative listings can be removed; you just need to be persistent and patient. I would suggest looking into a credit repair service if you have multiple negative listings on your credit report.
Topics: Credit |
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