Cleaning up your credit report can be very time consuming and also very frustrating. It is important to stay up on your credit report so that you will be able to obtain credit in the future when you need it. There are a few basic steps that you will need to follow to clean up your credit report.
The first step in cleaning up your credit report would be to obtain a free copy of your credit report. You are entitled to one free copy a year, and it is a good thing to have to stay on top of your credit history. You can obtain this copy either over the internet, or by calling one of the credit reporting companies.
Check your credit reports for any errors it may have. A lot of time there could be a few simple errors on your report, but they could be bringing your score down. If there happens to be any errors on your credit report, you need to notify the credit reporting agency in writing to dispute the error. Along with a letter you will need to include any documentation you have to prove your case.
Make sure that you do not send originals, but only copies. You will also want to keep a copy of everything you send for your records. The credit reporting agency will take about thirty days to make any adjustments, if any. If they do in fact make an adjustment, they will send you a copy of the new report. This report does not count as your one free copy a year.
You will also want to notify the creditor as well of the dispute. Include a letter of the error, as well as any documentation you have to prove that this is in fact an error. As like with the credit reporting agency, you will want to keep a copy of the letter for your own records.
Work with your existing creditors to make payment plans to get rid of some of your debt. If you are willing to work with them, they will be a lot more willing to work with you. If you do set up a plan with your creditors, make sure to get everything in writing for your own records.
Cancel any credit cards that do not have a balance on them, unless it is your only card. Having multiple cards can have a negative effect on your credit report because it is a potential debt you could have if you needed the money. Cancel the ones with either the highest interest rate, or the higher limit.
There are a lot of ways that you can clean up your credit report but you have to remember to stay on top of it. It holds the future to any credit lines you may seek in the future, and can destroy you if it is ruined.