By: Arthur Cooper
Submitted: 2010-11-05 12:41:49 | Word Count: 664
Having bad credit does not mean you will be automatically turned down for credit or a loan! There are ways to get past your bad credit history and turn it around so that you not only can get a loan, you can get favorable interest rates as well. It all starts with you applying for reports from the three major reporting agencies, TransUnion, Experian and Equifax. Once a year, and each time you might be turned down for credit, you are entitled to a copy of your credit report for free.
Very importantly, you will want to check each report for potential errors and expired charges that are being erroneously reported on your credit history. You need to comb through each listed bad credit item, and make sure that it has not already been paid, or it was paid on time and misreported, or the time allowed to keep it on your record (usually seven years) has expired. You will need a good, coherent letter to send each of your creditors in the event of a dispute, and services such as Credit Elves supply credit dispute letter templates for almost any specific requirement you may have. Look for collection records, charge-offs, closed accounts, inquiries and judgments that stay on for longer than seven years. Generally, those are supposed to come off your record, and your letter should state just that. Bankruptcies, foreclosures and liens can stay on for longer; check your local state law regarding these.
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Credit dispute template letters allow for room for you to state your account number, the dates of the loan or credit lines, disputed items and why you think they should be removed from your credit report.
Some examples of what to say in the letter are: What the dispute is specifically in regard to; why you believe the charge is erroneous; where you can be reached for further clarification; and that if the matter is not considered to be an error, how you would like to proceed with potentially settling the matter. Using a premade template can save you any guesswork you do regarding the Fair Credit Reporting Act, and legal matters such as statutes of limitation and bankruptcy law.
Once the creditor has received the letter, they have 30 days to investigate the claims you make and change your credit report. When they’ve checked into the matter, you will receive a letter regarding the disposition of the claim and how it was handled. If you could not get the error corrected, submit your written credit dispute letter again with additional supporting documents or new information as to why you think it should be take off your report. If you are still unsuccessful, try contacting your creditor directly and working out either a reduction in the charges, or an easy payment plan so you can get this matter off your credit once and for all.
A good credit dispute letter template will relieve you of the hassle of knowing exactly what to say and how to back it up.
