How To Use Dispute Letters To Increase Your Credit Score

How to use dispute letters to increase your credit score

How to use dispute letters to increase your credit score? The writing on the wall is clear. A bad credit score is like a slow puncture on your ride’s wheels. No matter how earnestly you desire to cruise forward, you will end up grounded. An individual’s credit history largely determines creditworthiness. Top on the list of determinants, the most critical and significant of them all is the credit score, largely determined by the FICO rating. A score of 670 to 739 is good credit history.

Attainment of a good score is a healthy cocktail of five ingredients; payment history, amount of money currently owed, the length of one’s credit history, the credit type held, and new credit. Of all these factors that affect creditworthiness and the ultimate FICO score, the first one, payment history, comprises a whopping 35% of the score. Dispute letters are written to repair any errors present in the Credit report by pointing and correcting inaccuracies in the payment history. Once the inaccuracies are rectified, and any occurring misreports are cleaned up, the consequent calculation using a cleaner payment history will increase your credit score. 

Related: All You Need To Know About Your FICO Score

What is a dispute letter?

A dispute letter is written to point out and request correction of errors in the credit report obtained from the three main reporting bureaus; Experian, TransUnion, and Equifax. This letter can be written by the individual or a contracted credit repair service. The reporting agencies are required by law to respond to every inaccuracy raised by the letter and afterward clean up their files and furnish all relevant authorities, including the lenders and the client who raised the dispute. 

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Dispute letters address the following key items that directly influence payment history and ultimately the resultant credit score;

  1. Delayed payments 

The credit reporting agencies handle and generate millions of reports across the country. However, the dispute letter narrows down on an individual account and brings into closer scrutiny small details that may have been overlooked. The client should identify contractual payment dates as agreed or later amended with the lender. Sometimes payment durations may have been renegotiated later and mutually altered with the lender. Providing this evidence in the dispute letter will go a long way in cleaning up the credit report and boosting the score.

Related: Can Creditors Remove Late Payments From Credit Report

  1. Collections

From time to time, creditors and debt collectors may inadvertently fail to furnish the credit reporting agencies updated facts on collection processes. Pointing out debts that have fully been cleared but not reported will help clean the blot from your repayment history. It is important to attach clearance certificates containing marked dates.

Related: How To Deal With Creditors When You Can’t Pay

  1. Bankruptcies 

A reported bankruptcy continues to bog down the credit score rating for up to seven years. If this period has expired, the dispute letter should spell out the first date of the negative item reporting and build a case that the time has come for the bankruptcy to be deleted from the report. 

Related: How To Get A Personal Loan After Bankruptcy

  1. Foreclosure

This information regards the lender’s attempt to recover a property due to nonpayment of a loaned facility. Any misreporting should be erased by pointing it out. On the other hand, the dispute letter ought to identify if any foreclosure item continues to damage creditworthiness long after the seven years expiry. Removal of such foreclosure will undoubtedly contribute to a favorable credit score in the next calculation.

Do credit dispute letters work?

There is no guarantee that sending a dispute letter will remove the discrepancies off your credit report or automatically fix your credit score. The more proof you have of an error or incorrect information the better your chance of getting it removed from your credit report. Writing a dispute letter only costs you a little bit of your time to send.

Can disputing hurt your credit?

No. Filing a dispute with the credit bureaus has no impact on your credit score. If the information on your credit report changes after sending dispute letters then your credit score could change.

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How long does a credit dispute take?

A credit dispute is usually completed in 10-14 business days. Sometimes disputes can be completed in as little as two to three days. The length of the dispute depends on information you provide and how quickly the lender can gather data. Once the lender has checked your information and data they will send you a response letter of their decision.

A dispute letter is the first recourse in the process of credit repair. The letter should address minute inaccuracies that collectively blemish an individual’s credit score. A properly crafted dispute letter should contain credible documents for evidential value, including a copy of the disputed credit report. All the items under dispute should be highlighted in the report.  When the corrections are executed and a new report issued, the previous positions stand annulled, and a new score can be calculated. An error in the credit report should be corrected the moment it is noted because it contributes to the credit score.

Related: How To Dispute Your Credit Report Information

FREE CREDIT DISPUTING LETTERS THAT ARE PROVEN TO INCREASE YOUR CREDIT SCORE INSTANTLY 

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  • Dispute Collections
  • ​Dispute Credit Inquiries
  • ​Dispute Bankruptcies
  • ​Dispute Late Payments
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  • Credit dispute letter templates and when to send them
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