Why Most Credit Dispute Letters Fail

On receiving your credit report, it is crucial to look at it keenly and from all angles for errors. These may be minor or major but will affect your credit score and make you incur extra charges. You have a right to dispute any incomplete and inaccurate information on your credit report by use of a credit bureau dispute letter. This may look like an easy process but in money matters, things may go wrong easily and fast. When writing, submitting and following up on your credit dispute letter, here are some of the errors that may jeopardize your process.

Insufficient Information

When writing your credit repair letter, it is very important to be clear and concise on the mistakes made on your report. Avoid using generic language at all costs. Give detailed information on why it is an error and what is supposed to have been put in place. If not, the credit reporting agency may not understand your complaints or know what exactly they should investigate and correct.

Lack of Evidence

All your claims must be backed up with sufficient and legitimate evidence. For example, if your credit report shows that a debt has not been paid in full and yet you have paid it, attach all payment receipts with the credit dispute letter before sending. The evidence ascertains that the errors are true and hence correction is easy and fast.

Frivolous and Irrelevant Disputes

The credit report agency has a mandate to look into all disputes. However if your dispute is irrelevant or frivolous, it may not be investigated. This especially occurs when you dispute most of the things in the credit report without certainty of what is an error and what is true, or repeatedly asking for re-investigation of the same item.  Your letter will be disregarded and no further action will be taken.

Use of Online Disputing Methods

Though a very easy and convenient method, disputing errors on your credit report online limits your chances of getting it corrected. Most, if not all credit report agencies have this option. However some of the major limitations of this method include:

  • You have limited space to explain your problem and you will definitely provide incomplete information.
  • You may not be able to attach supporting evidence.
  • You will not be able to track your complaint as you lose the paper trail.
  • You waive your rights to receive investigation results.

Write your credit bureau dispute letter manually and send it using a certified secure mailing service. This will enable you track your complaint and have evidence that it was delivered. This is important in case it is not acted upon and you decide to sue the agency.

Listening to a Debt Collector

Some debts on your report may be real but expired. These can only be removed from your report after seven years and you are not required to pay them. If they are not removed after this period, writing a credit dispute letter is necessary. However, debt collectors may trick you into acknowledging the debt and even agreeing to pay it partially. This will render your dispute for its removal useless. You will be forced to pay off a debt you could have otherwise avoided.

In a nutshell, writing a credit dispute letter requires specific and factual information. To avoid major losses and negatively affecting your credit score, the above are some of the mistakes you should steer away from.