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Information About Cleaning Up Your Credit Reports
- By Stuart Hunter
- Published Friday 4th 2009
- Money and Finance
- Unrated
Stuart Hunter
Providing credit repair services since 1991, Lexington Law has helped over 500,000 clients legally take on their credit. Last year alone, Lexington Law helped clients remove over 600,000 negative items from their credit reports.
View all articles by Stuart Hunter
The current economic climate highlights the importance of cleaning up your credit report, especially when the best rates for items such as mortgages are usually only available to consumers with a credit score of 750 or above.
Not too long ago a credit rating of 620 was considered good and 700 excellent; today's definition of a good credit score is above 700 and an excellent score is even higher. Keeping up with the higher demands of lenders leaves many people looking for a way to improve their credit scores.
The first step to cleaning up your credit reports is to obtain a copy of your credit report from all three major credit reporting agencies: TransUnion, Equifax, and Experian. You are entitled to a free copy of your credit report from each credit bureau once a year. It is important to carefully scan each report and not rely solely on the credit report from just one credit bureau, as incorrect listings could appear on just one report, and each report does not always report the same data.
After examining each report and noting the negative items you feel are inaccurate, you can write a credit dispute letter to each credit bureau disputing the item, enclosing any evidence you have that the item needs to be updated or removed.
The credit bureau then attempts to verify the disputed item within 30 days by contacting the company that originally reported the item. The information furnisher is tasked with proving the validity of the information. If they fail to respond (something that happens with regularity) or are unable to prove the information is accurate, the information should be corrected or deleted from your credit report. Keep in mind that the credit bureau can add the listing back onto your report if the original furnisher verifies or re-reports the information even after the thirty days has passed.
Not too long ago a credit rating of 620 was considered good and 700 excellent; today's definition of a good credit score is above 700 and an excellent score is even higher. Keeping up with the higher demands of lenders leaves many people looking for a way to improve their credit scores.
The first step to cleaning up your credit reports is to obtain a copy of your credit report from all three major credit reporting agencies: TransUnion, Equifax, and Experian. You are entitled to a free copy of your credit report from each credit bureau once a year. It is important to carefully scan each report and not rely solely on the credit report from just one credit bureau, as incorrect listings could appear on just one report, and each report does not always report the same data.
After examining each report and noting the negative items you feel are inaccurate, you can write a credit dispute letter to each credit bureau disputing the item, enclosing any evidence you have that the item needs to be updated or removed.
The credit bureau then attempts to verify the disputed item within 30 days by contacting the company that originally reported the item. The information furnisher is tasked with proving the validity of the information. If they fail to respond (something that happens with regularity) or are unable to prove the information is accurate, the information should be corrected or deleted from your credit report. Keep in mind that the credit bureau can add the listing back onto your report if the original furnisher verifies or re-reports the information even after the thirty days has passed.