5 Tips For Cleaning Up Your Credit Report

This might seem like a basic requirement but quite often people only focus on 1 of the 3 credit reports thinking that all reports are the same. Things couldnt be further from the truth. Quite often the information on these credit reports will vary. The three credit reports are provided by Equifax, TransUnion and Experian.

2) Look for out-of-Date & innacurate information

As you go over your report, list out everything that's not up-to-date. Information such as personal information, bankruptcies not designated by a chapter number, accounts that arent yours, closed accounts listed as open and any account that you closed that isnt listed as 'closed by consumer' should not appear on your credit report.

3) Request removal or dispute innacuracies

After looking over your report, use the form provided by the credit company to dispute inaccurate items. Create a list of all items and provide a concise explanation about why its inaccurate and should be taken off your report. The credit agency will get back to you within 30 days to let you know of their findings.

4) Rebuild credit

Ok, you've done what you could've to clean up the negative items on your report. Now its time to get some positive items on your report. You could carry out one of the following steps:

- Get a credit card if you no longer have one. If you dont qualify for a regular credit card, get a secured credit card after depositing some money. After making regular payments for an extended period of time (6 months to a year), you should be able to get a regular credit card.

- Maintain a balance of 10-15% of your credit card. Contrary to what you would expect paying down your entire credit card balance every month doesnt have the same impact as maintaining a small balance on your credit cards does.

- Dont close your older credit cards. The older your credit card, the futher back your credit history goes and the better it looks on your credit report.

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