How to Clean Up Your Credit Report?

Overview:

Whether you are planning to buy a car or a home, your credit report history is the first thing that your lenders will consider. One can choose to clean negative items in his report himself.

The following are the tips to clean negative items in your credit report:

  • Get your credit report from the credit bureau and look for negative items in the same. Every individual is entitled to a free report each year. It is a wise habit to review your report annually to check for negative items.
  • If you find any incorrect information in your profile, then dispute it immediately. This can either be done online or with a written application to the bureau. If you have a proof of the same, then attach it with the application for the sake of authenticity.
  • Once the application is made, your credit bureau will get in touch with your creditor and check whether the information provided by the applicant is true or not. If the claims are justified, the bureau will make the necessary changes to your report and will get back to you with a fresh report within 30 to 45 working days.
  • It is to be noted that negative items can be removed if you have maintained good relations with your creditor. For instance – You have defaulted your payment twice this year, but you have good relation with your creditor and if requested he may not pass this information to the credit bureaus. Hence, it is advisable to maintain a good rapport with your creditors.

Tips and Warnings:

  • It is a good habit to check your credit report annually. This will not only help you keep track of your score, but will also help you find out any inaccuracy or wrong information in the same.
  • In case you have been a victim of fraud, any transactions after that will not make a difference to your credit score.
  • Bankruptcy reflects in your report for 10 years
  • Collection items remain on your report for seven years.
Updated: November 30, 2016 — 1:01 pm

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