If you’ve been thinking about working with a credit repair specialist or are looking for ways to improve your credit, you likely know that you can file a dispute to remove outdated or inaccurate items from your credit report. Regularly scouring your reports for these inaccurate, negative items can change your life.
How does your credit affect your life? Your credit score can impact more than your financial situation. For example, your credit score can decide whether or not you qualify for that mortgage for your dream home, or determine whether or not you’re eligible for that new car you want to lease. If you’re married, your credit score can impact joint decisions you and your spouse make and hold you back from big plans.
By keeping a watchful eye on your credit reports, you can spot common inaccuracies such as:
- Outdated items (items that are more than seven years old in most cases)
- Identity errors
- Incorrect reporting of account status
- Data management errors
- Balance errors
These errors and negative items may be removed from your credit report easily if you find them, file a dispute letter, and provide evidence.
What Is a Dispute Letter?
A dispute letter is simply an explanation of an error (or several) or outdated information on your credit report. You can send this to one or all of the three credit bureaus (Equifax, TransUnion, or Experian). However, you absolutely must send the dispute letter to the business that supplied the inaccurate information to the bureaus.
Your dispute letter should identify each and every item you wish to dispute, stating facts, explaining why you are disputing the information, and request that the business take action to have it either removed or corrected. We recommend enclosing a copy of your report with some designation (circled or highlighted) on the items in question.
We also recommend you submit your letter via certified mail with ‘return receipt requested’ so you have records that the bureau received your letter. Always keep originals and submit copies, keeping your originals saved.
Sample of Dispute Letter
[Date of letter sent]
[Your full name]
[Your address, including your city, state, and zip code]
[The business’s name]
[Their address, including city, state, and zip code]
Subject: Disputing Information on Credit Report
Hello, I am writing to dispute the following information your company supplied to [the credit bureau whose report has the inaccurate information]. I have [circled or highlighted] the items I wish to dispute on the attached copy of my credit report(s).
This item [for example: an account that has since been closed but is listed as still open with an outstanding balance] is inaccurate because [describe in detail why the item is inaccurate. In this example, you would provide evidence that the account had been closed on X date, including confirmation codes, written correspondence that proves the account was closed or paid in full, etc.]
I am requesting that your business have this inaccurate [or outdated] item removed [or updated.]
[Repeat the last two paragraphs for other disputed items, if applicable. You can do this in list form or continue to write it out in paragraphs.]
I have enclosed copies of [your evidence, including credit reports and any other documents requiring a short description, such as a record of payments made or accounts closed] that support my request. Please investigate this matter and contact the nationwide credit bureaus to have them delete [or correct] the disputed item(s) as soon as possible.
Kind regards,
[Your name]
Enclosures: [List what documents and information you are enclosing to supplement your letter and provide evidence for your dispute.]
Wrapping Up
Keep in mind, there are a few errors that are not worth disputing because they hold nearly no impact on your credit score. These types of errors are called ‘header errors,’ such as a misspelled name or an outdated phone number. You should only dispute items that will negatively impact your credit score, such as outdated accounts or inaccurate payment reporting.
Combing through credit reports can be tedious and complicated, especially if you aren’t sure what to look for. Stop navigating your reports alone and refer to professionals who can break it down in a way that you can understand. At The Phenix Group, our professionals have expertise in both the legal and financial sides of credit reporting and can help you repair your credit. Contact us today for a consultation!
Learn about your rights in our post Pennsylvania Debt Collection Laws.