How to Clean Up Credit Report? 

Consumers should regularly review their credit report to ensure that it is error-free and that old information is deleted. In the United States, each individual is entitled to one free credit report annually. Consumers are also entitled to receive a free credit report any time their application for credit or a loan is denied. There are three major credit reporting agencies, any one of which can provide a free annual credit report. However, it is also a good idea to incur the modest expense of obtaining the credit reports from the other two bureaus as they may contain different information.

Potential creditors may look at the information from any of the three credit bureaus, which is why it is important to ensure they are all accurate. When a consumer needs to clean up credit report information, it can be a time-consuming process, but it is an essential one if the consumer requires a loan or a new credit card.

Once obtaining copies of credit reports from all three bureaus, the reports should be reviewed for inaccuracies and old information. If an error is discovered, then the consumer must begin to clean up credit report data by contacting the bureau that made the error. When a consumer requests a credit report, the agency compiling the report will almost always include a form which the consumer can complete and submit to dispute items on the report. Adverse information more than seven years old, credit inquiries greater than two years old, and incorrect account histories are all items which should be requested to be removed by the bureau.

The credit reporting agency is required to respond to this form within 30 calendar days. They may investigate the matters the consumer is disputing, and if they find the consumer is right, the erroneous items will be removed from the credit report. If, however, the bureau does not agree with the consumer’s assessment, the consumer should call the bureau directly. If this does not achieve results, the consumer should contact the creditor or collection agency that handled the account to see if they can correct the information. If none of this works, the consumer may be able to have a brief statement of their dispute of the information appended to their credit report. Most disputes are resolved before they reach this stage and the resolution leads to a better report and a higher credit score.