Letter to Dispute Debt

Bankrate.com reports that statistics show 70 percent of all credit reports contain serious errors. These errors can lower your credit score and lead to denials, high interest rates and strict loan terms. Fortunately, the three credit bureaus -- Equifax, TransUnion and Experian -- must investigate any error you bring to their attention and either remove or correct inaccurate information. You can dispute these inaccuracies through dispute letters.

Disputing Errors

Under the Fair Credit Reporting Act, the credit bureaus must investigate any legitimate claim from a consumer. To initiate a dispute, you must contact the creditor bureau who reported the inaccurate information directly. You can do this by writing a dispute letter to the credit bureau. Once the credit bureau receives your dispute, they will investigate your claim. The credit bureau may contact the creditor to validate the information. If the creditor cannot validate the information, the credit bureau will correct or remove the listing and send you an updated copy of your credit report.

Writing a Dispute Letter

The dispute letter must contain a header including your name and contact information, as well as the name and contact information for the credit bureau. In the body of the letter, write as much detail as possible. Include why you feel the credit bureau listed inaccurate information using any examples you can provide. Attach a copy of your credit report with the error circled on the report. Include any documents you have to support your claim as well.

Handling Accurate Negative Information

The credit bureaus cannot remove accurate information from your credit report. Smaller negative information, such as a late payment on a credit card, will remain on your report for 7 years, while larger problems, such as bankruptcy, remain on your report for 10 years. While you cannot delete this information, you can counteract the negative effect by building a positive credit history. Paying your bills on time, keeping your balances low and only applying for new credit when you truly need it will add positive information to your credit report.

Tips

Under the Fair Credit Reporting Act, the credit bureaus must give you a free copy of your credit report once per year. You can order a copy from each credit bureau at once or space out the reports throughout the year. You can receive a copy of your credit report from Equifax, TransUnion or Experian through the Annual Credit Report website.