In order to clean your credit, it will take a lot of patience and commitment, as this task can be overwhelming and too much to handle for some of you. In order to make this task a bit easier there are a few simple ways that help to form the best results giving you the most efficient and accurate results as well as bringing you peace of mind.
One of the most important steps in cleaning up your credit is to review each of your credit reports and have any incorrect information properly corrected by the credit agency, right away. Not only will this particular strategy help to disclose identity theft, but it is vital to maintaining good credit. It is also very important when cleaning up your bad credit entries. It is good practice to obtain a credit report on yourself at least once per year and ensure you review the report with a fine tooth comb so to speak. Should you find any discrepancies don’t let them go, dispute anything you find to be incorrect immediately.
When we talk about credit agency we are referring to the three major credit reporting agencies Experian, Equifax and Trans-Union. Each agency has a web site available where you will find instructions on how to order and pay for your personal credit report. Of course there are websites in existence where you can order all three reports at once along with other services as well.
The only caution we give you is to be careful as there are sites out there which can be a bit shady, asking you to join as a member so you can get additional services at special prices. Once you join and they have your credit card information, they bill you each month and make it very difficult to cancel the membership. The best practice I recommend is to order and print your reports directly from the agencies website. Yes it is a bit inconvenient to have to go to three separate sites and maybe it will cost you a few bucks more however it is worth it in the long run.
At this point you should have your reports so why not take a few minutes to organize each one, staple them together in an effort to keep them from getting mixed up. Of course you will no doubt want to go through each one separately, and you will also want to compare the information between them so you can check for discrepancies. Find a comfortable place where you can concentrate without being interrupted, with a highlighter in hand and a pen to mark things which you may question, take your time and review the report entry by entry.
Most credit reports are separated into four different sections – personal information, residential address, employment details and credit accounts both open and closed. The main focus of a credit report is to give you details of all open and sometimes closed credit accounts, and the credit rating of each account. You also need to be aware of the name recorded, address and employment errors as this could be a sign of identity theft. After this take a close look at the accounts, collections, judgements which you have paid in full and make sure they are showing as paid in the report. If for some reason they are not showing as paid it is a good idea to have the agency investigate this on your behalf. Not only should you mark the items you feel are incorrect, but you should go through your financial records to locate receipts and other records of proof to confirm you did in fact pay off the balance of the account in question.
While contacting the agency to help investigate incorrect information is sometimes a choice you may have, it is not always the case as the burden is on you to prove that you in fact paid your account in full. Information such as your address and name can be proven with documentation you have in your possession. You may need to contact the companies the accounts are through to find out their side of why the information was reported.
On the bottom of each credit report there is a place where you can record the information you are disputing and the credit agency also explains the necessary procedures to follow when completing this process. Make sure you follow these guidelines to the exact letter, as you don’t want your claim to be thrown out or delayed. Once you have filed your dispute each creditor has up to ninety days to make the necessary changes, after the ninety days are up the credit reporting agency can make the change or at the very least take action on your behalf. This is all part of the process to clean your credit and while it does take some time to get the incorrect information corrected, the time is well worth it and could save you money and extra interest charges in the future.
