Information About Cleaning Up Your Credit Reports
- By Stuart Hunter
- Published 09/4/2009
- Credit
- 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 HunterA 620 Credit Rating Isn't Enough These Days
The current economy highlights the importance of having a clean credit report, particularly when lower interest rates for new home loans are mainly offered to those with a credit rating of 750 or higher.
Not too long ago a credit rating of 620 was considered good and 700 was excellent; today's threshold for a good credit score is above 700 and an excellent score is even higher. Keeping up with the higher standards of lenders leaves many Americans searching for a way to increase their scores.
The first step to cleaning up your credit is to order a copy of your credit report from each of the three major credit reporting agencies: TransUnion, Equifax, and Experian. You can request a free copy of your credit report from each credit reporting agency once a year. Take time to thoroughly scan each bureau's report and not rely solely on the report from just one credit bureau, as inaccurate information could appear on just one report, and each report does not always contain the same information.
After looking through each credit report and noting the negative items you feel are incorrect or inaccurate, you can send a credit dispute letter to each credit bureau
disputing the item, enclosing any proof you have that the item is incorrect or inaccurate.
The credit bureau is then required to verify the disputed items within thirty days by contacting the credit company in question. The credit company is tasked with verifying the listing. If they do not respond (something that happens with regularity) or are unable to prove the listing is accurate, the listing should be corrected or completely deleted from your credit report. Be aware, though, that the credit bureaus can add the information back onto your report if the original furnisher verifies the information even after the 30 days has passed.
Not too long ago a credit rating of 620 was considered good and 700 was excellent; today's threshold for a good credit score is above 700 and an excellent score is even higher. Keeping up with the higher standards of lenders leaves many Americans searching for a way to increase their scores.
The first step to cleaning up your credit is to order a copy of your credit report from each of the three major credit reporting agencies: TransUnion, Equifax, and Experian. You can request a free copy of your credit report from each credit reporting agency once a year. Take time to thoroughly scan each bureau's report and not rely solely on the report from just one credit bureau, as inaccurate information could appear on just one report, and each report does not always contain the same information.
After looking through each credit report and noting the negative items you feel are incorrect or inaccurate, you can send a credit dispute letter to each credit bureau
The credit bureau is then required to verify the disputed items within thirty days by contacting the credit company in question. The credit company is tasked with verifying the listing. If they do not respond (something that happens with regularity) or are unable to prove the listing is accurate, the listing should be corrected or completely deleted from your credit report. Be aware, though, that the credit bureaus can add the information back onto your report if the original furnisher verifies the information even after the 30 days has passed.