How To Clean Up Errors In Your Credit Report

Cleaning Up Errors In Your Credit Report

One important factor that plays a role in maintaining a clean credit report is the contents of your credit report. Your credit report is the history of your financial life.

The credit report shows your credit score, which is a numeric ranking usually between 300 and 850. Several lenders use the credit score to help them make decisions whether you are worthy of a credit. The score is also used to determine your capability of paying a loan. The credit report is important and cleaning and maintaining a good credit report is vital to your fiscal survival.

Get A Copy Of Your Credit Report

In a credit report, the first entry is normally your personal information. It includes your name, listed
telephone number/s, previous and current addresses, reported differences of your Social Security Number, past and present employer, and your date of birth.

The information regarding your credit accounts follows your personal information entry. This is also listed in detail and normally includes loans, the maximum loan amount, and information of any joint account holders or co-signers. The credit report also incorporates a section, called Inquiries, which lists any person who has recently requested a copy of the credit report.

There are states, where the credit report contains public record information. This information
can feature overdue payments, bankruptcies, or other judgments in the court. These entries can last for up to ten years and may affect your chances of obtaining a loan negatively.

Where to Begin

Firstly, in order to clean up your credit report, you will need to order a copy of the report. You must
determine what is out of date or inaccurate, after which you can submit a letter to the bureau requesting fixes to the information. This process may take a long time and you may be required to do several follow-ups with each bureau before achieving a clean credit report. However, to perform this correctly, you must be aware of the information the credit agencies are allowed to report and the duration.

Ordering a credit report can be easily done and accessible to everyone, you are allowed one free report each year; under the FCRA or Fair Credit Reporting Act. Consumers are allowed to obtain a free copy of their credit report each year from each of the three major credit reporting companies,  Experian, TransUnion, and Equifax. However, if you have already obtained a copy of your credit report this year, you may be required to pay an additional fee if you want another copy.

Once you have obtained your report, review it carefully. Review every detail since bureaus can sometimes mix up names, addresses, or employers. Very often people who have common names have credit reports that may contain information on other variations of their name.

 It is extremely important that you perform regular checks on the credit report. It is advisable to order a copy of the report once a year and dispute any possible inaccuracies. Take steps in handling your payments and make sure no payments are late. Time is of the essence and even minimum payments should not be neglected.

Managing your credit can add as much as fifty points to your credit score over the course of a year.

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