Writing a credit dispute letter is a crucial step in improving your credit scores. Any incorrect items on your reports should receive your attention, and writing effective dispute letters is the suggested approach to removing these negative items. Start by checking out the credit repair letter template at the Federal Trade Commission website.

Notice how the example letter is short and to the point? Don't write a long essay, and don't plead your case as if you're in a courtroom. Just tell the recipient who you are, what the problem item is, and why it's wrong. Again, you could do a lot worse than to start with a sample letter provided by the FTC. Sign the letter and include a copy of your credit report clearly showing the item in question highlighted so it is evident which item you're referring to.

There are many types or credit repair letters you can send too. "Debt Validation" letters are those you send to creditors asking for some verification of claimed debts. "Dispute" letters are those you write to the reporting bureau challenging items you claim are mistaken. Be polite about it and remember these things do happen and can often be cleared up quickly.

In general the guidelines to follow would include sending a real letter, not an email. Keep it short and factual. Don't be argumentative or threaten the recipient. Include a photocopy of the report clearly showing the error. Document the sending of this credit repair dispute letter by keeping a signed and dated copy in your files. And remember - creative writing is not appropriate!