Clean Up Credit Score
A good credit history is the foundation of the financial independence and freedom. It is used in the calculation of FICO scores which determines the terms you would get a loan for or if you would get a loan at all. According to a study by Federal Trade Commission in 2013 almost one in four people had errors on their credit reports which could affect their credit rating. This is why cleaning credit score is important. Following are some of the steps you should take for credit score cleanup:
1, Get your hands on your report: You are entitled to a free copy of your credit report from all the three major credit bureaus: Equifax, Experian and TransUnion every twelve months quite apart from some other situations which merit free credit report.
2, Once you have the report, check and identify all the information: name, address and social security number among other things. Also take a look at all the accounts to see if they are yours. If any of this information is incorrect you should get it corrected as it could be negatively affecting your credit score.
3, It can sometimes happens that even though the debt has now been paid or it was transferred from the issuer to a collection agency but was not removed from the issuer’s side too, so that you see two different accounts in your credit report for the same or other such discrepancies, you should note them down.
4, Once you have found a major mistake you must dispute it with the credit bureau or lender. Usually you should do that with credit bureaus however, if it is an old credit which may have been paid off too. You should contact the lender about the error.
5, Then you must follow up on these disputes and try to do everything you can to get them removed from the credit reports. You can also hire the help of credit repair companies, which understand what needs to be done when cleaning credit score.