How To Write A Credit Repair Letter
Did you know that writing a letter can help boost your credit score?
Every time you apply for credit, a lender will request a credit report from the three main credit bureaus: Experian, TransUnion, and Equifax. Errors on your report could lower your credit score and may even cause your application to be rejected.
To prevent a scenario like this you’ll need to do two things: check your credit report for errors and omissions and send a written request to the bureaus to correct the mistakes.
This request takes the form of a credit repair letter - and in this article, we’ll show you how to write one effectively.
First Of All, Get Your Credit Reports
Before you can dispute the information on your credit report you’ll need to obtain the latest copy of this document from all three credit bureaus.
- You can request a free annual credit report once a year from TransUnion, Experian, and Equifax. This has been extended to once a week until April 2021 as a result of the Covid-19 outbreak.
- Once you receive your report you’ll want to check it for errors. These include your personal details, account balances, late payments, charge-offs, liens, judgments, and bankruptcies.
How To Dispute
If you’ve gone through your credit reports and found errors you’ll need to contact the specific bureau and ask them to correct the information or remove it from your record. You can contact each bureau using the information below.
- Experian - you can send your dispute by mail to Experian, P.O. Box 4500, Allen, Texas, 75013. You can also submit your dispute online.
- Equifax - learn more about the dispute process on the bureau’s website or submit a dispute in writing: Equifax Information Services, LLC, P.O. Box 740256, Atlanta, GA 30374-0256.
- TransUnion - after reviewing the information requirements on its website you can address your letter to TransUnion Consumer Solutions, P.O. Box 2000, Chester, PA 19016.
Writing Your Letter
Once you’ve identified errors on your credit report your next step will be to alert the specific bureau about these negative entries using the contact details above. The information you include in your letter needs to match the bureau’s requirements to improve your chances of success.
The following information is usually required by the three main credit bureaus:
- Your full name
- Your current address - if you’ve moved over the past two years you’ll need to provide your former address(es) too
- A copy of a government-issued ID
- A copy of a utility bill, bank statement, or other document confirming your personal details
- Your Social Security number
The structure of your letter is also important - it’s best to proceed simply and logically before double-checking the text to ensure that the situation is clearly spelled out.
- Your letter should begin with RE: and mention the name of the creditor and account number (eg. State bank Visa Card Number 8694 9292 5584 0039).
- The purpose of your letter - disputing wrong information - should be stated at the beginning.
- You’ll need to state why you believe the item is erroneous - and attach proof. This could include a recent account statement or another official document.
- A copy of your credit report with the error(s) clearly marked should be attached to your letter.
- Finally, you’ll need to request the type of resolution you’d like - usually a correction or removal of the item from your credit record.
Using A Template
If letter writing isn’t your strong point there’s no need to stress over the wording of your correspondence. You can always use a free template like this one which was drafted by the Federal Trade Commission.
You’ll want to keep the general outline of the template as is and change the relevant information (like your personal details and facts about the item you believe is incorrect).
Don't Forget To Send To The Right Bureau
The final step in the credit dispute process is sending your letter to the relevant bureau.
It’s important to note the Experian, TransUnion, and Equifax are separate, independent bureaus and don’t necessarily share information about every credit customer.
You’ll need to obtain a credit report from each agency and address any errors you find in the reports to the relevant bureau.
Conclusion
Errors on your credit report can cause your FICO score to fall - and often all it takes to resolve them is a well-written letter.
Once you’ve obtained your free annual credit report and assembled all the necessary information, you can use a letter template to draft your correspondence.
Remember - you’ll need to obtain a separate report for each of the three credit bureaus and follow up with each one individually in writing.
