Bad credit record or negative payment history is a very distressing situation. Well, you cannot blame anyone for it because your default in paying your debt obligation is your own doing. Definitely, it could emanate from your distraught financial condition. Repairing this credit condition can be painless if you have the initiative to execute credit repair letters. With a properly worded-letter to explain your past financial problem, you can surely mend your bad credit reputation to eventually repair and improve your credit scores.
In your intention to write credit repair letters, you can furnish a copy to each of the credit bureaus and collection agencies. There are different kinds of debt repair letters namely dispute letters, debt validation letters, pay for delete letters and cease and desist letters.
Initial step towards creating credit repair letters
The presence of a negative mark in your credit report will be the basis of the credit repair letters. In many cases, the basis of these kinds of letters is about the misinformation contained in the report. The effectiveness of the reasons you have given in the credit letters will tremendously help you in the repair of your bad credit record.
What items should your credit repair letter contain? You should identify the incorrect piece of information contained therein, if there is. Then explain why it is incorrect. You have to watch your language in the letter as you need to be polite but firm when you explain your side. Writing this credit repair letter forms the baseline for which you can start undoing the negative credit rating.
What is dispute letter about?
The most common of the credit repair letters is the dispute letter as this tends to be the most effective type. This letter is usually addressed to credit bureaus with the aim to dispute the account, personal information or public record. Here you can site some parts of the Fair Credit Reporting Act to support your claim. But do not resort to threats to the bureaus. Maintain the polite ways. If you are still not sure on how to compose this letter, try to find templates and samples in the internet. You can even make use of credit repair software that will tell you the relevant items to include in this dispute letter.
Other kinds of repair letters to erase the record of bad credit rating
Here are three other kinds of credit repair letters usually written for the collection agencies.
• Debt validation letters – These are letters to collection agencies for the sole purpose of validating your debt balance. This is simply a right to challenge or verify a statement of debt as contained in the Federal Fair Debt Collection Practices Act.
• Pay for debt letters – This is also a letter to the collection agencies when you want to negotiate in the payment of debt scheme for any existing account. This is done to remove or update your account to change the negative to positive credit report.
• Cease and desist letters – This is generally addressed to any person or entity but most usually to debt collection agencies. This is to request the agencies to stop contacting you. As a proof of the request, the letter should be certified to have been sent and there must be a return to sender part that is duly received and acknowledged by the addressee or authorized representative.
Credit repair letters are sent to the credit bureaus and the collection agencies. The dispute letters are usually addressed to the bureau while the other three are for the collection agencies.