What The Heck Is A Credit Repair Letter?

There are many types of letters to financial institutions about your credit that are lumped together under the term “credit repair letter”. Unfortunately, none of these types of letters will instantly fix all of your credit problems. It’s just not that simple. But they can certainly help make your credit get any worse and can help plug up any money leaks that can affect your credit rating. What’s really nice is that many credit repair letters are free credit repair letters.

Cease And Desist

If you are getting hounded by debt collection agencies or anyone you owe money to, you are not only legally entitled to tell them to shut up, but they are legally entitled to shut up. You do have to send them a type of credit repair letter called a cease and desist letter in order to prove that you are being hounded. The cease and desist letter needs to be polite, just state the facts and not get personal.

Before you send off the cease and desist letter, you need to make a copy of it and keep it with any copies or original harassing letters you have been getting. You also need to have the letter go by certified, return receipt mail. This will give you proof that the receiver has gotten your letter, especially if this winds up in court. Hopefully, you’ll never have to write this type of credit repair letter.

Debt Validation

This is another type of credit repair letter that you can send to anyone who owes you money. Debt validation letters could also be called “prove it” letters. Basically, you politely ask them to prove that you actually owe what they claim you owe. You also want to send this certified mail and make copies in case this goes to court.

Disputes

In America, you are legally entitled to three free credit reports a year, one from the three credit report agencies – Equifax, TransUnion and Experian. In this way, you can keep track of any identity theft or any mistaken charges or information placed on your permanent credit record. For example, you get a free credit report and see that you applied for a mortgage last year – only you hadn’t. But the report says you have.

This is where writing a type of credit repair letter called a dispute letter comes in. It’s very much like writing your bank to inform them of a charge on your checking account that you never authorized. You write the credit bureau and include a copy of the credit report. Calmly state your position. Never threaten to sue. This only makes it look like you have something to hide.