A Sample Dispute Letter Can Help or Hurt Your Bad Credit

Many consumers believe that credit repair simply means sending a handful of dispute letters to the credit bureaus to fix any negative accounts on their credit reports. Many credit repair companies subscribe to the same theory. More often than not, the reality is not as cut and dry.
The Benefits of a Dispute Letter

The ability to dispute information with the three major credit bureaus has been put in place because it is up to the consumer to verify and validate all information on their credit reports. Very often inaccuracies tend to go unnoticed and can negatively affect credit scores, the ability to borrow and interest rates for certain individuals. A dispute letter is a great way to ensure that these errors get removed from the credit reports.

The Disadvantages of a Dispute Letter
Consumers and credit repair companies alike have begun to see the dispute letter as a magical eraser, there to eliminate all of the derogatory accounts listed on credit reports. Not only is this unethical, but it could cause more problems for the consumer. In disputing a negative account that turns out to be accurate, consumers tend to notify the creditor or collection agency that they are trying to have it removed from their credit reports. It is fully within their rights to pursue legal action; so what may have started as a simple debt is now a full-blown lawsuit.

The Dispute Letter Reality
The bottom line is that while the dispute letter is a fundamentally important part of the credit repair process, it is not the all-encompassing credit repair overhaul that it is often made out to be. Even when used judiciously and legally it is still only a small segment of the wider credit repair picture.

Below is just a dispute letter sample to give you a better idea of what the credit bureaus are likely to respond to. Keep in mind, there is no "secret letter" that will get better results. A simple letter that explains the situation is just as good as any - trust us.

(Your name)
(Address)
(City, state, and zip code)
(Phone number)

(Credit Bureau name)
(Street address)
(City, state, and zip code)

Dear Dispute Investigation Department,

I am writing to inform you that there is inaccurate information reporting on my credit report. The following information is not correct and should be updated as follows:

(List each incorrect account on your credit report – include why it is in inaccurate and what it should be corrected to)

I have attached all relevant information pertaining to this account. Please feel free to contact me if you have any questions or need additional information to resolve this dispute.

Thank you for your assistance with this matter,

(Your full name)
(Signature)

We recommend you include two forms of ID for verification purposes.