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    #6. How To Write Your Own Credit Repair Letters

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    Carol
    This document provides guidance on writing credit repair letters to dispute inaccurate or fraudulent information on credit reports. It discusses templates for credit dispute letters, method of verification letters, goodwill letters, pay for delete letters, and credit inquiry removal letters. The document emphasizes the importance of regularly reviewing credit reports for errors and taking appropriate steps to ensure creditworthiness is accurately reported. These letters are presented as powerful tools to improve credit scores and take control of personal finances.

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    #6. How To Write Your Own Credit Repair Letters

    Uploaded by

    Carol
    592 views4 pages
    This document provides guidance on writing credit repair letters to dispute inaccurate or fraudulent information on credit reports. It discusses templates for credit dispute letters, method of verification letters, goodwill letters, pay for delete letters, and credit inquiry removal letters. The document emphasizes the importance of regularly reviewing credit reports for errors and taking appropriate steps to ensure creditworthiness is accurately reported. These letters are presented as powerful tools to improve credit scores and take control of personal finances.

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    #6. How to Write Your Own Credit Repair Letters

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    This document provides guidance on writing credit repair letters to dispute inaccurate or fraudulent information on credit reports. It discusses templates for credit dispute letters, method of verification letters, goodwill letters, pay for delete letters, and credit inquiry removal letters. The document emphasizes the importance of regularly reviewing credit reports for errors and taking appropriate steps to ensure creditworthiness is accurately reported. These letters are presented as powerful tools to improve credit scores and take control of personal finances.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    592 views4 pages

    #6. How To Write Your Own Credit Repair Letters

    Uploaded by

    Carol
    This document provides guidance on writing credit repair letters to dispute inaccurate or fraudulent information on credit reports. It discusses templates for credit dispute letters, method of verification letters, goodwill letters, pay for delete letters, and credit inquiry removal letters. The document emphasizes the importance of regularly reviewing credit reports for errors and taking appropriate steps to ensure creditworthiness is accurately reported. These letters are presented as powerful tools to improve credit scores and take control of personal finances.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    #6.

    How to Write Your Own Credit Repair Letters

    TEMPLATES, TIPS & RECOMMENDATIONS

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    If you are looking for a comprehensive collection of credit repair sample letters,
    you have come to the right place. This useful guide will navigate you through
    several credit repair strategies.
    We will give you tips on when and how to use them. We will also give you links to
    sample letters and templates you can use to get started.
    Credit reports and credit scores are designed to help lenders make informed
    decisions. They do this based on your established credit history.
    However, todayʼs digital world is subject to hacking, identity theft, and all kinds of
    electronic data mismanagement. Those things can significantly distort the true
    picture of what you look like as a consumer of credit.
    Whether you believe your credit report to be “healthy” or “sick,” you should always
    review your credit report at least once per quarter. Take any actions that you deem
    appropriate to ensure that your own creditworthiness is being reported accurately.
    This may seem like a decent amount of work initially. However, educate yourself on
    what problems to look for and how to fix them.
    It will quickly become an easy and efficient process. It can also make a world of
    difference any time you apply for credit.
    Before you even attempt to review your credit report for the first time, you should
    take the time to read the Fair Credit Reporting Act (FCRA) Section 611 on the
    Federal Trade Commission website. This will give you a sense of what rights you
    have.
    It will tell you how best to approach creditors and/or credit bureaus with any
    perceived discrepancies on your report. You will find that there are several tools
    that can help you rectify any actual or suspected problems with your report. We
    are going to cover the most important ones in this article.

    Credit Dispute Letter


    Do you suspect an organization is reporting something incorrectly to one or more
    credit bureaus. You can send them a credit dispute letter. that will require them to
    investigate and resolve your claim within 30 days.
    Anything on your credit report is subject to dispute: credit inquiries, collection
    accounts, and late payments. That includes anything else that might impact your
    credit score.
    When you identify a problem on your credit report, you need to build a compelling
    case to have the problem fixed or removed. Your credit dispute letter is essentially
    a summary of your argument. You should send it to the credit bureau along with
    any relevant documents to support your case.
    If your dispute is successful and they remove the item from your credit report, you
    will likely see your credit score improve in a matter of weeks. If they reject your
    dispute, it does not mean your quest for financial justice is over. In fact, your
    journey may be just starting.

    Method of Verification Letter


    A method of verification letter is a logical next step when a credit bureau refuses
    to fix or remove a disputed delinquency. With a method of verification letter, you
    are asking for documentation that provides clear evidence that supports their
    decision.
    The letter should follow the basic format of a business letter. The tone of the letter
    should be “direct and in control,” while being careful not to seem rude or
    belligerent.
    You want the reader to know that you are fully aware of your rights under the
    FCRA. Let them know that you are not someone who is going to back down easily.
    You should ensure that your method of verification letter includes a clear demand
    for irrefutable proof that you took appropriate and reasonable actions in order to
    definitively determine whether or not your dispute had merit.
    You want to be able to demonstrate that the credit bureau either failed to conduct
    an appropriate level of due diligence, or that they in some way mismanaged the
    process, in the unlikely event that your case goes to litigation.

    Goodwill Letter
    A goodwill letter can be an effective way to improve your credit score, but it needs
    to be done the right way to have a chance. When you write a goodwill letter, you
    are essentially asking a creditor for a “break” on a reported delinquency.
    The most important thing to remember when writing a goodwill letter is that you
    are the one responsible for the delinquency thatʼs sticking out on your credit
    report like an open sore. This is not a time to lash out at the creditor or blame
    anyone else.
    With a goodwill letter, you need to take ownership of your mistake. Provide any
    evidence that supports the notion that this was a one-time incident. Show that it is
    not likely to happen again. Show (donʼt tell) them that you learned from your
    mistake.
    Donʼt be discouraged by certain creditors, like Bank of America, who claim they
    “arenʼt able to honor requests for goodwill adjustments” because the Fair Credit
    Reporting Act requires them “to report complete and accurate information” to the
    credit bureaus. A quick search of the internet shows that people have had success
    writing goodwill letters to Bank of America, as well as many other creditors who
    claim to never honor such requests.

    Pay for Delete Letter


    A pay for delete letter is a negotiation tool that you use to remove open collection
    accounts from your credit report. With a pay for delete letter, you are essentially
    asking a creditor to agree to remove negative information from your credit report
    once you pay the debt in full or settled for an agreed upon amount.
    Itʼs important to know that collection agencies donʼt necessarily demand the
    outstanding balance to be paid in full. They typically purchase the outstanding
    debt from the original creditor.

    They do that for some small percentage of the balance due. That is with the hope
    that theyʼll be able to recover at least a portion greater than the amount they paid
    for it.
    If you offer the full amount of the outstanding debt, they are likely to be more
    receptive to working with you. If what youʼre offering is less than what they paid
    the original creditor, they are probably going to be less likely to cooperate with
    you.
    A pay for delete letter may be a bit of a longshot, but if youʼve gone through all the
    other options at your disposal, itʼs definitely worth giving it a try.

    Credit Inquiry Removal Letter


    Credit inquiries are in the categories of “hard inquiries” or “soft inquiries.” Hard
    inquires DO appear on your credit report. Soft inquires do NOT appear on your
    credit report.
    A hard inquiry is often the result of an application for a mortgage or an auto loan.
    You typically have to take some kind of tangible action to trigger a hard inquiry.
    Soft inquiries can happen automatically. Itʼs common for credit card issuers to
    scour databases in order to find pre-qualified customers to solicit. You may have
    soft inquiries happening every day and you would never know it.
    Itʼs important to note that not EVERY hard inquiry will appear on your credit report.
    If you are shopping around for auto loans, the bureaus will typically be able figure
    it out. If you have multiple inquires in the span of 90 days or less, they will only
    count it as one inquiry.
    Now that you understand what kinds of inquiries might appear on your credit
    report, you should look through your report to see if thereʼs something there to
    challenge.
    An example might be an auto loan inquiry that was just a few days or weeks past
    the “cutoff” date to not be included as part of an earlier “batch” of car loans. If
    you think this happened to you, itʼs definitely worth your time to send a credit
    inquiry removal letter.

    Final Thoughts
    These letters are powerful tools that can help you improve your credit score. They
    can help you take control of your finances.
    Hopefully this guide provided you with an overview of how and when to use each
    of these letters. They can help you accomplish your financial goals.
    You should get into the habit of reviewing your report at least once per quarter. Go
    through every line item carefully. Circle each entry that you think might need your
    attention. If you never made the inquiry, you can pull up your credit inquiry removal
    letter and get right to work.
    When you find a late payment, a fraudulent account, or some other derogatory
    entry that shouldnʼt be there, you should follow a logical sequence until the matter
    of resolved. Ideally, they will resolve it as soon as you contact the creditor, and
    they realize their mistake and remove the entry.
    If the creditor refuses to fix or remove the entry, you can pull up your credit
    dispute letter template. Go through the process we described. If that doesnʼt
    work, you should go right to the method of verification letter. Just keep going until
    you either resolve the issue or thereʼs just nowhere left to go.
    If you determine that the entry really is legitimate, you donʼt have to settle. It might
    be a good time to try a goodwill letter. If that doesnʼt work you always have the
    pay for delete option.
    You should always advocate for your own financial reputation with all of the tools
    at your disposal. If youʼre too busy to do it on your own, or if you face a problem
    that just seems too big to handle, you should look into hiring a reputable credit
    repair company.
    They have trained experts who know what strategies work best with all types of
    issues. They can save you time and money.

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