Credit Repair Dispute Letters - Do Not Send Them Off Blindly!

Research demonstrates that three quarters of all credit reports contain inaccurate information, which can negatively impact your credit score. An effective way to repair your credit is by writing credit repair letters disputing incorrect information. By law, the credit agencies and creditors must provide the evidence to prove that the information on your credit report is correct; therefore, the burden of proof is on their shoulders, and this is great news for your credit score.

HOWEVER … disputing items the wrong way will range from being ineffective all the way to get creditors to sue you for a debt that was almost forgotten!

Preparing Your Defenses For the Credit Repair Letters

To clean up and repair your credit report, you will first need to obtain a copy of your credit file and start listing all items that you feel are incorrect or incomplete. After you have made copies for your records of the credit reports, start noting every entry that is erroneous or can be disputed. To help you keep track of the errors, you can even write “in dispute” beside the items, as well as any additional explanations that you will want to use for your credit repair letter.

There are some “easier” items on your credit report that you may be able to dispute. These relate to accounts that are older or have already been paid off in full. They are no longer that important to a creditor, and therefore the bureaus are less likely to take the time to provide evidence against your disputes. Here are some types of information you can safely question:

• Accounts from seven or more years ago (some are up to ten)
• Late payments on accounts that are now fully paid off
• Items less than $2000
• Discharged bankruptcies
• Credit inquiries
• Paid Charge offs

You should also ensure that your name, address, and your social security number are recorded accurately. Check any bankruptcies to verify that the correct chapter number is being used, along with any court records that should have fallen off according to their age.

Disputing the Wrong Items, at the Wrong Time, Can Deal You a World of Hurt

On the other hand, it will be more difficult to remove an item from your credit report if it is still important to the creditor. Therefore, collection agency accounts, creditor accounts that are open and past due, bankruptcies, current court judgments, IRS and State tax liens are all difficult to dispute successfully. Worse, if you do decide to dispute them - and you legally are - it will come to the bureaus’ attention, and whoever holds any of your old debt can come right back and sue you for it!

Tread very carefully on these items:

• Accounts over $2000
• Unpaid debt within the Statute of Limitations

Basically, use common sense when disputing your items. If you have old debt but you are not being hassled by collection agencies for it, leave it alone. The older your bad debt, the more minimal damage it will do to your credit report. Dispute safer items that will still increase your credit score, such as unjustified credit inquires or expired items that must be removed. If the bad credit is true, disputing them will only make creditors aware of them, worsening your situation and your report.

An effective and professional credit repair service can help advise you what items to dispute. They will either take you through the process or draw up and send the dispute on your behalf.

Related Articles:

• Using Credit Repair Services and Avoiding Scammers
• Watching Your Credit by Ordering Your Credit Reports
• Seven Steps to Disputing Bad Credit – A Do It Yourself Job
• How to read a credit report to improve your score
• How Many Credit Accounts Should I Have?
• Credit Repair - The Process, and How to Detect Scammers