Writing a Credit Restoration Letter (with Sample) Use this sample credit restoration letter as a template for your formal notification. Last updated on January 18th, 2019
In order to finance a home, car or low-cost insurance policy, it is essential for consumers to have a good credit rating. Consumers are entitled to a free credit report every year, and if a company or bank refuses them credit based on their poor credit rating. They must ask for it within 60 days of the refusal. The purpose of viewing a credit report is to see if it is accurate.
Credit reports often have mistakes and inaccuracies that can be challenged by the consumer and removed by the creditor. However, if the reasons for a poor credit rating are accurate, they cannot be legally removed. There are steps a consumer can take to repair their credit if it is at all possible.
Consumers can send a credit restoration letter to the credit reporting agencies, which are Experian, TransUnion and Equifax. These credit reporting agencies are required to provide consumers with an annual free copy of their credit report, and there is no cost for disputing outdated items or errors on the report. An outdated item is a debt that is more than seven years old, or 10 years for bankruptcy.
It may be possible to dispute a credit report online, but if it is going to be done by mail, there are some things that need to be included in the letter:
• Identification information including the last four digits of the consumer’s Social Security number and the Credit Report reference number
• The incorrect items on the report should be clearly identified
• The letter should be short and to the point. It should be no more than one page long and not contain any abusive language
• The letter need not contain credit protection laws. The credit reporting agency will know their job
• If there is documentation such as cancelled checks or receipts that prove a bill was paid, they should be included with the letter. A copy of the credit report that was sent to the consumer should also be included with the mistakes circled
• If the consumer has tried but failed to restore their credit by phone or other means, they may want to put a CC at the bottom of the letter that indicates they are sending a copy to the Better Business Bureau. Credit reporting agencies are required to investigate and respond within 30 days to consumers who register a dispute
Credit Reporting Agency
The credit reporting agency will send the disputed items to the creditors who must investigate. The results of the investigation must be reported back to the credit reporting agency. If the disputed information is inaccurate, the creditor should inform the agency and the credit report corrected.
A copy of the corrected report must be sent to the consumer and may be requested to be sent to a bank or other lender.
If the creditor does not agree that the disputed item is incorrect, the consumer can ask the reporting agency to include a copy of the credit restoration letter with their credit report if any creditors ask for their credit rating.
Below is a sample of a credit restoration letter. The consumer needs proof that the letter was sent and received, so it should be written in formal business-letter style and sent by certified mail. The sender should keep a copy. Any documents, cancelled checks and receipts that are included should be copies and not original documents.
Sample Credit Restoration Letter
Consumer’s Name Last four digits of Social Security number Credit Report reference number Consumer’s Address City, State, Zip Code
Credit Reporting Company’s Name Credit Reporting Company’s Address City, State, Zip Code
RE: Dispute items on my credit report
Dear Sir or Madam:
It came to my notice that my credit score is low when I was denied a car loan of $5,000. Since I pay my debts every month, I would like to dispute two incorrect items on my credit report. In compliance with the Fair Credit Reporting Agency (FCRA), I request that you investigate this matter and update my credit report accordingly. The disputed information is:
Creditor’s Name and account number and date Creditor’s Name and account number and date
Within 15 working days of the completion of your investigation, I would like my new credit report to be sent to Name of Bank as well as to my address above, so I can get my car loan. I have enclosed copies of my cancelled checks and receipts that prove I paid those debts.
I trust the creditor’s investigation will show the above list to be erroneous. If you have any questions, I can be reached at Phone Number or at Email Address.
Thank you for your timely attention to this matter.
Sincerely, Signature of Consumer Printed Name of Consumer List of Enclosures: copies of cancelled checks, receipts and a copy of the credit report with the errors circled.