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Lettericity is a graph parameter responsible for many attractive structural properties. In particular, graphs of bounded lettericity have bounded linear clique-width and they are well-quasi-ordered by induced subgraphs. The latter property implies that any hereditary class of graphs of bounded lettericity can be described by finitely many forbidden induced subgraphs. This, in turn, implies, in a non-constructive way, polynomial-time recognition of such classes. However, no constructive algorithms and no specific bounds on the size of forbidden graphs are available up to date. In the present paper, we develop an algorithm that recognizes $n$-vertex graphs of lettericity at most $k$ in time $f(k)n^3$ and show that any minimal graph of lettericity more than $k$ has at most $2^{O(k^2\log k)}$ vertices., Comment: 16pages + 3pages appendix. Submitted to a journal