Explanation of a Bad Credit Letter

The Federal Trade Commission (FTC) states you should order a free copy of your credit reports on annual basis. When you review your credit reports, you will be able to see if there are errors or if anyone has illegally opened an account in your name and report it to the credit bureaus.

Credit Bureaus

Errors on your credit report and identity theft can lower your credit score, and writing a letter about such incidents to the three credit bureaus can help remedy the situation. The three credit bureaus in the U.S. include Equifax (Equifax.com; Equifax Credit Information Services, Inc., P.O. Box 740241, Atlanta, GA 30374), Experian (Experian.com; Experian Information Solutions, PO Box 9600, Allen, TX 75013) and TransUnion (transunion.com; TransUnion Consumer Solutions, P.O. Box 2000, Chester, PA 19022-2000). While you can order your credit report from one central source (annualcreditreport.com), you must dispute errors found in a report with the individual credit bureau. Errors you find in your credit report can include claims that you made a late payment, non-payment of a debt or bill, lines of credit falsely opened in your name and claims that you surpassed a credit limit.

Bad Credit Letter

To dispute an error in your credit report, you can file a dispute claim online at the respective credit bureau's website. The FTC, however, suggests that you submit a claim in writing. Before writing the letter, make a list of all the inaccuracies you found in the credit report, beginning with the oldest account.

Supporting Documents

Find the documents that support your claims. These documents can include statements mailed to you, copies of canceled checks or even a police report about an identity theft incident. Make a copy of your credit report and highlight the data you wish to dispute. Also, make copies of your supporting documents and highlight the information that shows you are right.

Writing the Letter

In your report to a credit report, tell the credit bureau that you found information in your credit report that you believe is incorrect and that you wish to file a dispute. List each account in question, applicable dates and the errors you find. Before you end your letter, state that you enclosed documents that support your claims. After signing the bad credit letter, write "Enclosures:" and list the documents you will send with the letter. The FTC states that it can take up to 30 days for the credit bureau to look into your dispute.