Cleaning up your credit report can seem like a daunting task, but a few simple steps could prevent your Credit Score from being hurt any further. Until recently passed legislation, consumers were unable to check their credit report without paying a fee. However, everyone can now monitor their credit report annually at no cost. This is important for several reasons, first it insures that there are no errors that might have otherwise dropped their score drastically. And secondly it shows you all accounts that are not in good standing, in case you may have forgotten due to a change in address or other reason. In this article, I will provide you with tips on how to clean up a bad credit report. Let's begin.
First, go to a website like freecreditreport.com to perform your free annual check. There are a couple primary credit reporting companies like Experian that house all your information. After logging into the website and choosing which credit reporting company to view, check any potentially negative Items. You should see the name of the company that and the reason for the negative status.
Second, if you do not agree with the negative item, you must dispute it. It is up the reporting company to prove that the information is correct. Also, make sure you review the section on Knowing Your Rights. There is often helpful information on structuring your dispute.
Third, if you have currently open accounts that are in bad standing it is important that you take immediate action. Print out a copy of the report so you have all the pertinent phone numbers. Then, start calling all the companies for which you are past due. When speaking with your creditors, tell them your situation and that you would like to stop the delinquent status. Explain that you really want to pay your bill but are having difficulties. In some instances, you may be allowed to restructure your repayment so that payments are manageable. This will take you out of default and prevent the late payments from further hurting your score. There is also the option to settle the account which may be one way to proceed. However, this usually requires you to pay at least half of the total balance and it also will show on your credit history for 10 years! This will prevent you from obtaining any new credit, and will increase your rates when you finally are able. However, this should be used as a last resort.
Fourth, consider these final tips. It is also important to note that closing your accounts is not a good idea. When you do this, it lowers your credit score. Opening a lot of new accounts does the same thing, so be careful to only open accounts that have the best rates, and are needed. To improve a bad score, remember to always pay your bill in full each month and not to carry a balance. Also, use only up to seventy percent of your available credit, and never max out the card.
In conclusion, stop wondering "How to Clean your Credit Report" and take action. By getting a free credit report, disputing erroneous information, negotiating with creditors and taking preventive action, you'll be well on your way. Good luck!
First, go to a website like freecreditreport.com to perform your free annual check. There are a couple primary credit reporting companies like Experian that house all your information. After logging into the website and choosing which credit reporting company to view, check any potentially negative Items. You should see the name of the company that and the reason for the negative status.
Second, if you do not agree with the negative item, you must dispute it. It is up the reporting company to prove that the information is correct. Also, make sure you review the section on Knowing Your Rights. There is often helpful information on structuring your dispute.
Third, if you have currently open accounts that are in bad standing it is important that you take immediate action. Print out a copy of the report so you have all the pertinent phone numbers. Then, start calling all the companies for which you are past due. When speaking with your creditors, tell them your situation and that you would like to stop the delinquent status. Explain that you really want to pay your bill but are having difficulties. In some instances, you may be allowed to restructure your repayment so that payments are manageable. This will take you out of default and prevent the late payments from further hurting your score. There is also the option to settle the account which may be one way to proceed. However, this usually requires you to pay at least half of the total balance and it also will show on your credit history for 10 years! This will prevent you from obtaining any new credit, and will increase your rates when you finally are able. However, this should be used as a last resort.
Fourth, consider these final tips. It is also important to note that closing your accounts is not a good idea. When you do this, it lowers your credit score. Opening a lot of new accounts does the same thing, so be careful to only open accounts that have the best rates, and are needed. To improve a bad score, remember to always pay your bill in full each month and not to carry a balance. Also, use only up to seventy percent of your available credit, and never max out the card.
In conclusion, stop wondering "How to Clean your Credit Report" and take action. By getting a free credit report, disputing erroneous information, negotiating with creditors and taking preventive action, you'll be well on your way. Good luck!
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