1. Get a copy of your credit report and look it over carefully. See if any obvious errors jump out at you, such as accounts you didn't open, bad credit loans, or payments you didn't miss. If you happen to see any fraudulent accounts on your credit report, you need to get them removed as soon as possible. Millions of credit transactions take place every month and it's always possible that a simple mistake has taken place, but you don't want somebody else's mistake looking like one of yours. It's a good idea to review your credit report at least once per year. You know the old saying: An ounce of prevention is worth a pound of cure. It couldn't be more true here! You can find your free credit score by going directly to companies like TransUnion Canada or Equifax USA and Equifax Canada
2. Do you have any credit cards you're not using? If what's in your wallet isn't being used, you should close the account because open accounts sitting on your credit report are reducing your credit worthiness. The reason for this is because available or "open" credit is often viewed as negatively as utilized credit. Plus, if you close credit card accounts that you're not using you won't be tempted to buy that awesome set of steak knives you saw advertised on your satellite TV at three o'clock in the morning while you were eating that monster bowl of ice cream.
3. Even if you have a balance on a credit card, call the credit card company and cancel the account. A lot of people don't know this, but you don't have to have a zero balance to cancel an account. You can cancel the card and pay the account off under the terms of your card membership agreement. Don't believe me? Dig out the terms and conditions disclosure you got in the mail when you received your card and you'll see that I'm right on the money. Not only will this help improve your credit score, but you'll find it easier to sit down or close your purse.
4. Do you have late payments languishing on your credit report? If you do, and you're current right now, you can call the creditor and ask them if they're willing to change that late payment to an on-time payment. You have about a 50% chance of getting your late payment removed, but it's better than the 0 % chance you have by not asking!
5. Do you have any charged-off accounts or missed payments on your credit report that are older than two years? If you do, there's an excellent chance you can get those entries removed as well. In most cases, creditors are only required to keep records for credit transactions for two years. Simply write to the credit reporting agency and dispute that entry and asked for written verification of the accuracy of that record. If the creditor can't prove it, the credit reporting agency is required to remove it.
Copyright (c) 2008 Darrin Roseborsky
Often, there are mistakes made on credit reports that are difficult to correct. Perhaps someone else's account is showing up on your credit. Maybe a lender reported the wrong information. I had a lender once report a late payment, while providing a payment schedule that showed I never missed a payment. They refused to remove it, saying that it was indeed late, though they couldn't give the month it was late. Another lender said that I sent them a check that came back as non-sufficient funds, when it had been an electronic debit over the phone. They had submitted the routing number as the account number, causing the missed payment. Yet they argued with me for days that they were "holding in their hands" the check with NSF marked on it. It took a phone call from my bank to straighten it up.
It can be frustrating. Yet, vital. Your credit report dictates what you pay to borrow money and have insurance coverage. A mistake can cost you thousands of dollars if not cleared up.
You've gone through the appropriate channels and provided all of the necessary paperwork. Yet, the creditor still refuses to fix the report. What do you do now?
You can start by writing a statement of up to 100 words that states your dispute of the accuracy of a credit report item. You then submit it to the credit bureau. It will be added to your credit report at no charge.
The law, through the Equal Credit Opportunity Act, requires lenders to consider information that shows that your credit report may be inaccurate. You simply provide the lender with the documentation that proves your dispute. It is best to do this in advance of the lender's credit check. That way, you are all prepared.
If you feel it is the credit-reporting agency's fault that the inaccuracy remains on your report, you could sue the credit-reporting agency under the Fair Credit Reporting Act for "negligent" or "willful" noncompliance. If you win, your court costs and attorney fees will be paid.
You can continue to gather your documentation and re-submit your dispute. Perhaps new info and a new set of eyes at the agency will lean more your way.
In general, the best way to remove something is to have the creditor request it be removed. You may be required to provide the creditor with your documentation. They will not admit to having it right out. For example, a credit card company recently sent me a credit card in my maiden name for my mother's account. She had never requested me to be added to her account. When it showed up on my credit report after three requests to be removed from the account, I was angry. The company swore that they had no records of my name ever being on the account, but that they would have it removed from my credit. It took six months.
Make sure you check your credit report three times a year. You are entitled to one free credit report annually from each of the three major agencies. You can go to www.annualcreditreport.com for more information. When applying for a loan, ask what your credit score is, just for curiosity. Most credit scores can be purchased online for less than $10. Make sure you check your FICO score, as it is the one used by lenders.
Both Darrin Roseborsky & Rateempire are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Darrin Roseborsky has sinced written about articles on various topics from Finances, Credit Counseling and Credit Cards. Darrin Roseborsky is a Refinance Specialist with OMAC Mortgages, seminar speaker and president of . Darrin shows people how to MAXIMIZE their eq. Darrin Roseborsky's top article generates over 27100 views. to your Favourites.
Rateempire has sinced written about articles on various topics from Finances, Diamonds and Mortgage. RateEmpire.com, an internet consumer banking and marketplace, is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provi. Rateempire's top article generates over 18100 views. to your Favourites.