Time to Clean Up Credit Report

Time to Clean Up Credit Report

It is possible that it never occurred to you to clean up credit report until you found out how low your score was. Most people only see the need to do the clean up because they got declined on loan or charge card applications. This is not the usual way to go about it, but if you have already been denied credit, it is the best time to do everything you can to make the first step to clean up your credit report. How do you do this? First on the list is to get copies of your credit files from all three national consumer reporting agencies, which are TransUnion, Equifax, and Experian.

Why? The answer is because you need to know exactly what is being reported. Having copies will let you see why your score is so low and what factors are affecting it. Since some creditors only send their data to one or two agencies, it means that there is a lot of room for discrepancies and errors. This is an area you should focus on.

Once you have your hands on all the reports, start going through them one by one. Check to see if all the details are accurate and write down the ones that you do not recognize or would like to dispute. Some things that you may not realize can affect your credit badly include

• delinquent accounts where you are an authorized user or guarantor
• accounts you opened but never used
• accounts that report the wrong limit

If you have all the details, the next step is to clean up these errors by asking the consumer reporting agencies to remove them from your report. This can be done by sending in a letter of dispute with the details like when it was reported and which account you are referring to. You can also photocopy the document and encircle the ones you are referring to.

This may be easier for the agencies to understand. Be as concise as possible while explaining why it needs to be removed. If you have proof to back up your claims, include that as well. Send the letters using certified mail to make sure that they receive it and keep backups in your file.

Staying organized is important because they may ask you for more information before proceeding with the investigation.In the end your goal is to get results! Follow it up if you do not hear from the agencies. By law, they have 30 days to prove that the details they posted are accurate; otherwise, they are be required to correct the errors or remove them entirely. It may seem like a chore to clean up credit report errors, but it gives you a better understanding of how credit works and how you can use it to your advantage. The faster you clean it up, the better your chances become of getting approved for loans you may need in the future.
Author : T J Andersen, Source : enzinearticle.com

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